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2 October, 03:34

The following information is from the Income Statement of the Swifty Laundry Service:

Revenues

Service Revenues $4940

Expenses

Salaries and wages expense $ 1860

Advertising expense 380

Rent expense 230

Supplies expense 150

Insurance expense 80

Total expenses 2700

Net income $2240

The entry to close the Laundry Service Revenue account includes a:

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Answers (1)
  1. 2 October, 03:37
    0
    The journal entry for closing the laundry service revenue is shown below:

    Laundry service revenue A/c Dr $4,940

    To Income summary $4,940

    (Being service revenue account closed)

    We credit the income summary account because the service revenue is added while preparing the income statement. If there is a net income, so the revenue is excess than its expenses and if there is a net loss, so the expenses are excess than its income.
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