The Income Summary Account Shows

question 46

Essay

The Income Summary account shows:
a. What does this indicate?
b. Prepare the entry to close Income Summary. Omit explanation.

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Definitions:

Duty

In a negligence action, an obligation to live up to a reasonable standard.

Gratuitous Bailment

A legal relationship where personal property is voluntarily transferred from one party to another without expectation of payment or benefit.

Equity

Legal principles founded upon fairness, as developed in the Court of Chancery to relieve the harshness of the common law; also the value left in an asset after subtracting what the owner owes.

Leasehold Estates

An estate that gives the holder (lessee) the right to use and occupy rental property for a fixed or indefinite period, without owning the property.