The following information is from the income statement of the cheyenne laundry service:
revenues
service revenues $5720
expenses
salaries and wages expense $ 2160
advertising expense 440
rent expense 260
supplies expense 180
insurance expense 90
total expenses 3130
net income $2590
the entry to close the income summary includes a:

Credited to the retained earning accounts by $2,590

Explanation:

The net income is come by subtracting the total expenses from the revenue account.

In mathematically,

= Sales revenue - total expenses

The journal entry for closing the Income Summary is shown below:

Income summary A/c Dr $2,590

    To Retained earning A/c           $2,590

(Being income summary account is closed)

The net income amount would be added to the retained earning account by $2,590

previous business sales - c.