Companies prepare an income summary and an income statement at the end of an accounting period. While an income summary is a clearing account used to close income-statement accounts at the end of a ...

A company often employs a variety of accounting tools to keep track of its profits or losses and expenses. Along with knowing the overall profit or loss incurred by the company since inception, a ...

Closing entries transfer revenue and expense balances to the retained earnings account. This process resets the temporary account balances to zero for the new accounting period. Recording closing ...