For the year ended December 31, a company has revenues of $324,000 and expenses of $199,500. The owner withdrew $52,800 during the year. The balance in the owner's capital account before closing is $88,000. Which of the following entries would be used to close the withdrawal account? Multiple Choice Debit Owner's Withdrawals $52,800; credit Owner's Capital $52,800. Debit Owner's Capital $88,000; credit Income Summary $88,000. Debit Income Summary $52,800; credit Owner's, Capital $52,800.
For the year ended December 31, a company has revenues of $324,000 and expenses of $199,500. The owner withdrew $52,800 during the year. The balance in the owner's capital account before closing is $88,000. Which of the following entries would be used to close the withdrawal account? Multiple Choice Debit Owner's Withdrawals $52,800; credit Owner's Capital $52,800. Debit Owner's Capital $88,000; credit Income Summary $88,000. Debit Income Summary $52,800; credit Owner's, Capital $52,800.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
Related questions
Question
![For the year ended December 31, a company has revenues of $324,000 and
expenses of $199,500. The owner withdrew $52,800 during the year. The
balance in the owner's capital account before closing is $88,000. Which of
the following entries would be used to close the withdrawal account?
Multiple Choice
Debit Owner's Withdrawals $52,800; credit Owner's
Capital $52,800.
Debit Owner's Capital $88,000; credit Income
Summary $88,00.
Debit Income Summary $52,800; credit Owner's,
Capital $52,800.
Debit Owner's Capital $52,800; credit Owner's
Withdrawals $52,800.
Debit Income Summary $88,000, credit Owner's
Withdrawals $88,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe56102dc-a8bb-451c-8991-0ce877a5307e%2F649513bd-536c-4b16-a621-d01db1090d7c%2Fbt8b5g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:For the year ended December 31, a company has revenues of $324,000 and
expenses of $199,500. The owner withdrew $52,800 during the year. The
balance in the owner's capital account before closing is $88,000. Which of
the following entries would be used to close the withdrawal account?
Multiple Choice
Debit Owner's Withdrawals $52,800; credit Owner's
Capital $52,800.
Debit Owner's Capital $88,000; credit Income
Summary $88,00.
Debit Income Summary $52,800; credit Owner's,
Capital $52,800.
Debit Owner's Capital $52,800; credit Owner's
Withdrawals $52,800.
Debit Income Summary $88,000, credit Owner's
Withdrawals $88,000.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Step 1 Introduction
The closing entries are prepared to close the temporary accounts of the business including revenue, expenses, Drawings, dividend, etc.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning