Refer to Best Buy’s financial statements in Appendix A to answer the following.

Required

1. For the fiscal year ended February 26, 2005, what amount is credited to Income Summary to summarize its revenues earned?

2. For the fiscal year ended February 26, 2005, what amount is debited to Income Summary to summarize its expenses incurred?

3. For the fiscal year ended February 26, 2005, what is the balance of its Income Summary account before it is closed?

Fast Forward

4. Access Best Buy’s annual report for fiscal years ending after February 26, 2005, at its Website (BestBuy.com) or the SEC’s EDGAR database (www.sEc.gov). How has the amount of net income closed to Income Summary changed in the fiscal years ending after February 26, 2005?

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Five-Year Financial Highlights $ in millions, except per share amounts Fiscal Your Consolidated Statements of Earnings Data Revenue Operating Income Earings from continuing operations Loss from discontinued operations, net of 2005 2004 2003 2002 2001 $27433 $24,548 $20,943 $17,711 $15,189 1,442 934 1,304 1,010 908 611 800 622 570 401 (29) (441) (51 Goin (loss) on dispersal of discontinued operations, not of tax 50 (66) Cumulative effect of change in accounting principles, net of tax (82) Not warnings 984 705 99 570 396 Per Share Data Continuing operations $2.79 $2.41 $1.90 $1.77 $1.26 Discontinued operations (0.09) (1.34) (0.02) Gain (lou) on disposal of discontinued operations 0.15 (0.20) Cumulative effect of accounting changes (0.25) Net earnings 2.94 213 0.31 177 1.24 Cash dividends declared and paid 0.42 0.40 Common stock pric High 62.20 62.70 53.75 51.47 59.25 Low 43.87 25.55 16.99 22.42 14:00 Operating Statistics Comparable store sales change 4.3% 7.1% 24% 1.%%% 4.9% Gross profit role 23.7% 23.9% 23.08 20.0% 18.5% Seling, general and odministrative expense 18.4 18.6% 18.8% 14.9% 14.5% Operating income rate 5.3% 5.3% 4.8% 5.1% 4.0% Year-End Data Current ratio 14 1.3 13 1.2 1.1 Total assets $10,294 $8,652 $7,694 $7,367 $4,840 Long term debt, including current portion 600 850 834 820 296 Total shareholders equity 4,449 3,422 2,730 2,521 1,822 Number of stor US. Best Buy stores Magnalia Audio Video stores International stores Total retail square footage (000) U.S. Best Buy stores Magnolio Audio Video vores International dores 668 608 548 481 419 201 22 19 13 13 144 127 112 95 28,250 26,421 24,243 21,599 19,010 194 218 189 133 133 3,139 2,800 2,375 1,923