Revenues total $10 200. Expenses total $7 300. Drawings total $2 600. What is the balance in the Income summary account prior to closing profit or loss to the Capital account?

Question

Quizplus · Accepted Answer

The Income Summary account balance is calculated by subtracting total expenses from total revenues. Thus, $10,200 (revenues) - $7,300 (expenses) = $2,900 credit balance. Drawings do not affect the Income Summary account.

Revenues Total $10 200