Principles of Accounting, Part 4, Question 45

[snazzlefrag]

If a debit is an increase in amount, then why is the answer to Part 3, question 5, "The balance in the Sales Revenue account for LJM. Inc at the end of January is $12,200. Using a comma to separate your answer, first indicate what account is debited and then what account is credited?" Sales Revenue, Income Summary? It says "The Revenue account now has a zero balance and the Income Summary has a $12,200 credit balance." If the sales revenue account is debited (increased), how can it be zero?

mstcrow,

I don't have access to the exact question, but off the top of my head it looks like they are closing the Revenue & Expense account out to the Income Summary.

As a result, the revenue for the month of January is brought down to zero (ready for a fresh start in February) and the $12,200 is instead accounted for in the Income Summary.