Income Summary Appears On Which Financial Statement
Income Summary Account In Financial Statement Income Summary Account does not appear in any Financial Statement as it is a Temporary Account which is finally closed to Retained Earnings at the time of recording Closing Entries which is a Step of Accounting Cycle . B asically, income summary is prepared on temporary basis after preparing Fina ncial Statements in order to calculate net income / net loss for the period or to close revenues and expenses. It is internally recorded by the company’s accountant. So, I ncome Summary Account does not appear on any financial statement b ecause, it is mai nly prepared o n temporary b asis after all fi nancial statements are prepared i n order to close all temporary accounts i.e., transfer t h e difference of revenues and expenses accounts to Retained Earnings Account for t h e period and also to find out t h e summary of revenues and expenses so t h at t h e net income calculated under t h is summary account must b ...