Closing Revenue in Accounting?

Question

Use this information to answer the following question.

T account form after the recording and posting of closing entries:

The income summary t account has dr of 900 and two credits of 600 and 300 (both dated 12/13).

so what is the amount of revenue earned for the period?

Would it be my first number on the credit side? the 600?

What else gets closed and put into the income summary as a credit aside from revenue? Thanks for the help!

Answer 1

I think the $900 is the expenses, and the $600 is the revenue. That means the co. made a loss of $300. Then the entry:

Dr  Retained earnings $300

Cr  Income summary $300

was made to close off the Income summary acct to RE. All items of a revenue nature get credited to income summary.