A closing entry is a journal entry made at the end ... earnings account or an intermediate account known as the income summary account. Income summary is a holding account used to aggregate ...

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 ...

The income summary account now has a zero balance ... earnings account balance is reduced by $1,000. Now that the closing entries are completed, run a trial balance to check that your accounts ...