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.

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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