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Income Summary and Capital Accounts a. Explain the relationship between the Income
Chapter 10, Problem 3(choose chapter or problem)
QUESTION:
Income Summary and Capital Accounts
a. Explain the relationship between the Income Summary account and the capital account.
b. Why doesn’t the Income Summary account have a normal balance?
Questions & Answers
QUESTION:
Income Summary and Capital Accounts
a. Explain the relationship between the Income Summary account and the capital account.
b. Why doesn’t the Income Summary account have a normal balance?
ANSWER:Step 1 of 3
Capital account is a general ledger personal account that records owner’s contribution and retained earnings of a company traced in an accounting period.