Question

After After posting the injuries to close all revenue and expense accounts, Marker company's income summary...

After After posting the injuries to close all revenue and expense accounts, Marker company's income summary Account has a credit balance of $7000 and it's dividends account has a debit balance of $3000. These balances indicate that net income for the current accounting period amounted to $4000. true or false
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Answer #1

Answer: False

Explanation:

Closing entries are the journal entries to close all revenues and expenses to income summary account. The closing entries are written at the end of accounting year. After close of all revenues and expenses then we get net income or loss transfer to income summary account and close the income summary account to retained earnings.

After close of income summary account, then closes the dividends account.

Thus the given statement is false.

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