Intermediate Accounting -Accounting Notes #3

Close expenses to income summary a close make balance

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Unformatted text preview: t on books 1. Close Revenues to Income Summary 2. Close Expenses to Income Summary a. close = make balance = $0 b. *Balance in Income Summary = Net Income or Net Loss (depending on how the company is doing) get Statement of Retained Earnings on Books (no entries for beg. bal already on books) 3. Close Income Summary to Retained Earnings 4. Close Dividends Declared (contra-equity account) to Retained Earnings...
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