Dogwood company earned revenues of $19,000 and incurred expenses of $7,000. the owner made withdrawals of $3,500. what is the balance in the income summary account prior to closing net income or loss to the owner, capital account?

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Business

Izaiah Leon

16 May, 23:58

Dogwood company earned revenues of $19,000 and incurred expenses of $7,000. the owner made withdrawals of $3,500. what is the balance in the income summary account prior to closing net income or loss to the owner, capital account?

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Raquel Villa · Answer 1

Calculation of balance in the income summary account prior to closing net income or loss to the owner's capital account:

It is given that Dogwood Company earned revenues of $19,000 and incurred expenses of $7,000. The owner made withdrawals of $3,500.

Hence the balance in the income summary account prior to closing net income or loss to the owner's capital account shall be as follows:

= Revenues - Expenses

= 19000-7000

= $12,000

Hence the balance in the income summary account prior to closing net income or loss to the owner's capital account shall be $12,000