A debit balance in the income summary account indicates what?

Help with closing income summary account.?

• Can someone guide me through this question. It's causing me a lot of trouble I want to do net income minus dividends but I'm not sure. A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below. What amount will be posted to Tricia DeBarre, Capital in the process of closing the Income Summary account? (Assume all accounts have normal balances.) Tricia De Barre, Capital $ 7,300 Tricia De Barre, Withdrawals 9,900 Revenue 30,500 Rent expense 3,900 Salaries expense 7,500 Insurance expense 950 Depr. Expense-equipment 530 Accum depr.-equipment 1,590 $17,620 debit. $7,720 credit. $24,920 credit. $17,620 credit. $19,210 credit. Thanks everyone.

• Answer:

  Closing Entries Dr Revenue 30,500 Cr Income Summary 30,500 Dr Income Summary 12,880 Cr Rent expense 3,900 Cr Salaries expense 7,500 Cr Insurance expense 950 Cr Depr. Expense-equipment 530 The income summary now has a credit (gain) balance of 17,620 Dr Income Summary 17,620 Cr Tricia De Barre, Capital 17,620