The correct answer is option D
Owner's Capital account has a CREDIT balance. This means in order to reduce it, there must be DEBIT
Also, we know that LOSSES cause reduction.
Governed by this Logic, LOSS shall be DEBITED to Owner's Capital.
Income summary shows the Net Profit/Loss
So the corresponding credit would be to Income Summary
The entry to transfer a net loss to the owner's capital account would include a debit...
The entry to the owner’s drawing account would include a debit to the 6 Quiz 0 Saved Help Save & Exit Submit MC Qu. 6-47 The entry to close the owner's drawing... The entry to close the owner's drawing account would include a debit to the Multiple Choice Book owner's capital account and a credit to the owner's drawing account. ) owner's drawing account and a credit to Cash. ferences Income Summary account and a credit to the owner's drawing...
The entry to close the drawing account would involve a Select one: a. debit to capital. b. credit to cash. c. debit to Income Summary. d. credit to net income.
the entry of depreciation expense account may include a debit uiz 0 Saved Help Save & Exit Submit MC Qu. 6-48 The entry to close the Depreciation Expense... The entry to close the Depreciation Expense account may include a debit to: Multiple Choice 0 the Income Summary account and a credit to the Depreciation Expense account. 0 the Depreciation Expense account and a credit to the Accumulated Depreciation account. aces 0 the Accumulated Depreciation account and a credit to the...
Adam James and Jane Smith are partners. The entry to distribute a net loss to both partners is A. debit, Adam James, Drawing; debit, Jane Smith, Drawing; credit, Income Summary. B. debit, Income Summary; credit, Adam James, Capital; credit, Jane Smith, Capital. C. debit, Adam James, Capital; debit, Jane Smith, Capital; credit, Income Summary. D. debit, Income Summary; credit, Adam James, Drawing; credit, Jane Smith, Drawing.
Journal entry number one record entry to transfer fees income to income summary. Number to record entry to transfer expenses to income summary. Number three record entry to transfer net income or net loss from income summary to Capital. Number for record entry to transfer drawings to Capital account. General ledger post the closing entries to the owners capital account. Trial balance prepare a post-closing trial balance Danos Company's partial worksheet for the month ended December 31, 2019. is shown...
The first two closing entries to the Income Summary account indicate a debit of $55,500 and a credit of $67,000. The third closing entry would be: Multiple Choice O debit Revenue 567,000; credit Expenses $55,500. debit Income Summary $11,500; credit Drawing $11,500. debit Income Summary $11,500; credit Capital $11,500. debit Capital $11,500; credit Income Summary $11,500.
The owner's drawing account is closed by debiting the owner's drawing account and crediting the owner's capital account debiting the owner's capital account and crediting the owner's drawing account. debiting Income Summary and crediting the owner's drawing account debiting the owner's drawing account and crediting Income Summary
16. The entry to close the Withdrawals account to Capital was omitted. This error would cause. A) the Capital account to be understated. B) net income to be overstated. C) Revenue to be understated. D) the Capital account to be overstated. 17. Which of the following accounts will NOT appear on the post-closing trial balance? A) Accounts Receivable B) Cash C) Accounts Payable D) Withdrawals 18. Which of the following could appear in an adjusting entry, closing entry, and reversing...
On a statement of owner's equity, beginning capital is $43,000, Net Income for the year is $17,500 and Drawing for the year is $7,300, the ending capital amount would be: Multiple Choice: 1. $67,800 2. $43,000 3. $53,200 4. $32,800
The entry to close the revenue accounts includes a * Debit to income summary $32,300 Debit to Revenues for $37,100 Credit to income summary $35,300 Credit to Revenues for $28,300 The entry to close the expenses accounts includes a * Debit to income summary $12,900 Credit to income summary $12,900 Debit to income summary for $24,000 Credit to total expenses for $16,000 After the revenue and expense accounts have been closed, the balance of Income Summary will be * Credit...