USA Net Income

May 11, 2012
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So of the review I'm doing before my final next week, the one question I'm stuck on is this one. Once again, I'm really just looking for help on how to get to the solution. This particular problem is making me feel like a fool for not knowing it, but either way, I can still at least ask.

A summary of selected ledger accounts appear below for Alberto’s Plumbing Services for the current calendar year end.

Alberto, Capital
12/31 8,500 1/1 6,500
12/31 18,500

Alberto, Drawing
6/30 3,500 12/31 8,500
11/30 5,000

Income Summary
12/31 15,000 12/31 33,500
12/31 18,500

What is Net Income for the period?



VIP Member
May 12, 2011
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United States
Almost indecipherable. Anyway Income Summary does - guess what - summarizes the income. It shows a posting of $33,500 in CR and $15,000 in DR. so Net income was the NET = $18,500 in income. And then income summary was cleared out by a DR of $18,500 and a CR of $18,500 was posted to Alberto's Capital acct.

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