Question

Income Summary has a credit balance of $12,000 after closing revenues and expenses. The entry to close Income Summary is credit Income Summary $12,000, debit the Dividends account $12,000. credit Income Summary $12,000, debit the Retained Earnings account $12,000. debit Income Summary $12,000, credit the Retained Earnings account $12,000. debit Income Summary $12,000, credit the Dividends account $12,000.

Answer 1

Answer:

debit Income Summary $12,000; credit Retained Earnings $12,000.

Explanation:

Based on the information given The entry to close Income Summary is:

Debit Income Summary $12,000

Credit Retained Earnings $12,000

(To close Income Summary)