Prior to its closing, Income Summary had total debits of $1,190,500 and total credits of $1,476,300. Briefly

Question:

Prior to its closing, Income Summary had total debits of $1,190,500 and total credits of $1,476,300. Briefly explain the purpose served by the income summary account and the nature of the entries that resulted in the $1,190,500 and the $1,476,300.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Financial Accounting

ISBN: 978-1305088436

14th edition

Authors: Carl S. Warren, Jim Reeve, Jonathan Duchac

See More Books

Question Posted: Dec 19, 2016 10:45 AM

See More Questions

Prior to its closing, Income Summary had total debits of $432,200 and total credits of $572,600. Briefly explain the purpose served by the income summary account and the nature of the entries that...
Prior to its closing, income Summary had total debits of $815,000 and total credits of $1,280,000. Briefly explain the purpose served by the income summary account and the nature of the entries that...
Prior to its closing, Income Summary had total debits of $279,615 and total credits of $392,750. Briefly explain the purpose served by the income summary account and the nature of the entries that...
Inferring Investing and Financing Transactions and Preparing a Balance Sheet During its first week of operations ending January 7, 2011, FastTrack Sports Inc. completed six transactions with the...
A debtor went through bankruptcy under Chapter 7 and received his discharge. Which of the following debts were completely discharged, and which will remain as future debts against him? (a) A claim of...
According to the government, federal spending on K12 education has increased dramatically over the past 20 years, but student performance has stayed essentially the same. Hence, former President...
Which types of economic damages are related to digital crimes?
Tri-State Bank and Trust is considering giving Josef Company a loan. Before doing so, management decides that further discussions with Josefs accountant may be desirable. One area of particular...
3. The length of the biceps muscle increases 1.7cm over the course of an overhead softball throw. The stiffness constant for the biceps is 225,000 N/cm. Calculate the strain potential energy (in Nm)...
Business transactions for Ellis Company and East Air follow: 1. Merchandise inventory worth $50,000 is acquired at a cost of $42,000 from a company going out of business. The following entry is made:...
From the list that follows, identify the accounts that should be closed to Income Summary at the end of the fiscal year: a. Accounts Payable b. Accumulated Depreciation-Equipment c. Depreciation...
After all revenue and expense accounts have been closed at the end of the fiscal year, Income Summary has a debit of $798,400 and a credit of $955,300. At the same date, Debra Allen, Capital has a...
Two uniform rods each of weight W and length L are maintained in the position shown by a couple M 0 applied to rod CD. Knowing that the coefficient of static friction between the rods is 0.40,...
What limits are placed on employment related expenses for the household and dependent care credit?
Explain the circumstances that permit a shareholder, who receives an installment obligation from a liquidating corporation, to defer recognition of gain until the shareholder receives the payments on...
What are the seven tests that help to establish material participation?
How many years of post-secondary education expenses are eligible for the Hope tuition credit?
What are the most common types of qualified plans for small businesses?
Explain how the existence of line spectra is consistent with Bohrs theory of quantized energies for the electron in the hydrogen atom.
Suppose that a flow network G = (V, E) violates the assumption that the network contains a path s t for all vertices V. Let u be a vertex for which there is no path s u t. Show that there must...
(a) Explain the purpose of the two accounts: Depreciation Expense and Accumulated Depreciation. (b) What is the normal balance of each account? (c) Is it customary for the balances of the two...
At March 31, the end of the first month of operations, the usual adjusting entry transferring prepaid insurance expired to an expense account is omitted. Which items will be incorrectly stated,...
At March 31, the end of the first month of operations, the usual adjusting entry transferring prepaid insurance expired to an expense account is omitted. Which items will be incorrectly stated,...
15.5 kg is moving due east with a speed VA = 7.80 m/s, while object (B) of mass mB = 30.0 kg is moving in a direction that makes angle of 58 north of east with a speed VB = 5.20 m/s. The two objects...
An object is launched horizontally from the top of a cliff with an initial speed of 1 5 m / s . When the obiect has traveled a horizontal distance of 4 0 meters, how far below the launch point is the...
200 cubic metres of hot humid air are being cooled. The original air is at 33.5 degrees Celsius and has a relative humidity of 70%. It is cooled to 20 degrees Celsius. How much water condenses from...

Prior to its closing, Income Summary had total debits of $1,190,500 and total credits of $1,476,300. Briefly

Question:

Step by Step Answer:

The income summary account is used to close there venue and ex...View the full answer

Financial Accounting

Students also viewed these Accounting questions