The income summary account is closed to the owner's capital account.

Name: The income summary account is closed to the owner's capital account.
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At the end of an accounting period, the balance in the income summary account is transferred or closed to the owner's capital account. This process helps to update the owner's equity section of the balance sheet and reflects the net income or loss for the period. Therefore, the income summary account is closed to the owner's capital account.

The Income Summary Account Is Closed to the Owner's Capital