The steps in the closing process are 1 close credit balances

The steps in the closing process are (1) close credit balances in revenue accounts to Income Summary; (2) close debit balances in expense accounts to Income Summary; (3) close Income Summary to Retained Earnings; (4) close Dividends to Retained Earnings.

Solution

Answer is 3

close Income Summary to Retained Earnings

balance of income summary is transferred to retained earning and income summary account is closed at year end.