Income Summary has a credit balance of $17,000 in S.Sufjan Co.after closing revenues and expenses.The entry to close Income Summary is

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The purpose of closing the Income Summary account is to transfer the net income (or loss) to Retained Earnings. Since the Income Summary account has a credit balance of $17,000, it means that revenues exceeded expenses, resulting in a net income of $17,000. To close the Income Summary account, we need to debit it for $17,000 (to reduce the credit balance to zero) and credit Retained Earnings for the same amount (to increase the credit balance by $17,000). Therefore, the entry to close Income Summary is: debit Income Summary $17,000, credit Retained Earnings $17,000.

Income Summary Has a Credit Balance of $17,000 in S