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:

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter10: Accounting For Sales And Cash Receipts

Section: Chapter Questions

Problem 7SEA

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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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