Question

Rosewood earned revenues of​ $19,000 and incurred expenses of​ $4,500. The owner made withdrawals of​ $2,500. What is the balance in the Income Summary account after closing net income or loss to the​ Owner, Capital​ account?

Answer 1

In the wake of shutting overall gain/misfortune to the proprietor, capital record, the salary rundown will have a parity of O.

Step-by-step explanation:

The equalization of Income summary accounts is a transitory record and is moved to portion the record the parity might be Income (if income is higher than costs) or Loss Of income is lesser than costs. At the point when the impermanent record close, its equalization comes back to zero Therefore, in the wake of shutting net gain/deficit to the proprietor, capital record, the pay rundown will have a parity of O.