In the Income Statement columns of the work sheet, Income Summary is shown as the net balance of the two amounts in the Adjustments column.

Question

Quizplus · Accepted Answer

Income Summary is not shown in the Income Statement columns of the work sheet; rather, it is used in the closing process to summarize revenues and expenses. The net income or loss calculated in the Income Statement columns is transferred to the Balance Sheet columns, not to an Income Summary account in the worksheet.

In the Income Statement Columns of the Work Sheet, Income