medium · Financial Accounting accounting-cycle-financial-statements
At the end of the fiscal year, Coastline Coffee Co. has a credit balance in its Income Summary account of $11,200 after closing all revenue and expense accounts.
What is the required journal entry to finish closing this account to Retained Earnings?
- Debit Retained Earnings $11,200; Credit Income Summary $11,200
- Debit Income Summary $11,200; Credit Cash $11,200
- Debit Revenue $11,200; Credit Income Summary $11,200
- Debit Income Summary $11,200; Credit Retained Earnings $11,200
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