For the year ended December 31, a company has revenues of $327,000 and expenses of $201,000. The owner withdrew $54,000 during the year.The balance in the owner's capital account before closing is $91,000. Which of the following entries would be used to close the withdrawal account?Multiple ChoiceOOODebit Owner's Withdrawals $54,000; credit Owner's Capital $54,000.Debit Income Summary $54,000; credit Owner's, Capital $54,000.Debit Owner's Capital $91,000; credit Income Summary $91,000.Debit Owner's Capital $54,000; credit Owner's Withdrawals $54,000.Debit Income Summary $91,000, credit Owner's Withdrawals $91,000.

Closing Entry: It refers to the entry that is recorded by the business at the closing of the…

For the year ended December 31, a company has revenues of $327,000 and expenses of $201,000. The owner withdrew $54,000 during the year. The balance in the owner's capital account before closing is $91,000. Which of the following entries would be used to close the withdrawal account Multiple Choice ( O O Debit Owner's Withdrawals $54,000; credit Owner's Capital $54,000. Debit Income Summary $54,000; credit Owner's, Capital $54,000. Debit Owner's Capital $91,000; credit Income Summary $91,000. Debit Owner's Capital $54,000; credit Owner's Withdrawals $54,000. Debit Income Summary $91,000, credit Owner's Withdrawals $91,000.

For the year ended December 31, a company has revenues of $327,000 and expenses of $201,000. The owner withdrew $54,000 during the year. The balance in the owner's capital account before closing is $91,000. Which of the following entries would be used to close the withdrawal account Multiple Choice ( O O Debit Owner's Withdrawals $54,000; credit Owner's Capital $54,000. Debit Income Summary $54,000; credit Owner's, Capital $54,000. Debit Owner's Capital $91,000; credit Income Summary $91,000. Debit Owner's Capital $54,000; credit Owner's Withdrawals $54,000. Debit Income Summary $91,000, credit Owner's Withdrawals $91,000.

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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