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

Revenues

Service Revenues $5720

Expenses

Salaries and wages expense $ 2160

Advertising expense 440

Rent expense 260

Supplies expense 180

Insurance expense 90

Total expenses 3130

Net income $2590

The entry to close the Income Summary includes a:

Credited to the retained earning accounts by $2,590

Explanation:

The net income is come by subtracting the total expenses from the revenue account.

In mathematically,

= Sales revenue - total expenses

The journal entry for closing the Income Summary is shown below:

Income summary A/c Dr $2,590

To Retained earning A/c $2,590

(Being income summary account is closed)

The net income amount would be added to the retained earning account by $2,590