After preparing and posting the closing entries for revenues and expenses,the income summary account has a debit balance of $27,000. The entry toclose the income summary account will be:Multiple ChoiceDebit Income Summary $27,000; credit OwnerCapital $27,000.Debit Owner Withdrawals $27,000; credit IncomeSummary $27,00.Debit Income Summary $27,000; credit OwnerWithdrawals $27,000.Debit Owner Withdrawals $27,000; Credit OwnerCapital $27,000.Debit Owner Capital $27,000; credit IncomeSummary $27,000.

Closing entries are made every year in order to ascertain the results. For a manufacturing…

Answered: After preparing and posting the closing…

After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $27,000. The entry to close the income summary account will be:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

After preparing and posting the closing entries for revenues and expenses,
the income summary account has a debit balance of $27,000. The entry to
close the income summary account will be:
Multiple Choice
Debit Income Summary $27,000; credit Owner
Capital $27,000.
Debit Owner Withdrawals $27,000; credit Income
Summary $27,00.
Debit Income Summary $27,000; credit Owner
Withdrawals $27,000.
Debit Owner Withdrawals $27,000; Credit Owner
Capital $27,000.
Debit Owner Capital $27,000; credit Income
Summary $27,000.

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