Service Revenue XXX Income Summary XXX Revenues will be debited for the total dollar amount in the account at the end of the fiscal period. To record the closing of revenues
Expenses: Transaction Description
Journal Entry Account Title
Debit
Credit
Income Summary XXX Salaries Expense XXX Cost of Goods Sold XXX Rent Expense XXX To record the closing of expenses Supplies Expense XXX Repair Expense XXX Depreciation Expense XXX Utilities Expense XXX Each expense account will be credited for the total dollar amount in the account at the end of the fiscal period. The Income summary account will be debited for the total sum of all expense. Expense accounts should be listed highest to lowest in dollar amount.
Retained Earnings: Transaction Description
To close a net income into retained earnings
Journal Entry Account Title
Income Summary Retained Earnings
Debit
Credit
XXX XXX
Retained Earnings XXX To close a net loss into retained earnings Income Summary XXX The closing entries for revenues and expenses must be posted to the ledger accounts and a balance must be drawn before this journal entry can be made. If the balance in income summary is a credit then use the net income journal entry. If the balance in income summary is a debit then use the net loss journal entry.
