If a business had a net loss for the year,what would be the closing entry to closeincome summary and transfer the net loss tothe capital account?

Closing entries are also known as closing journal entries. They are prepared at the end of…

Answered: If a business had a net loss for the…

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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Similar questions

If a business has a net loss for a fiscal period, the journal entry to close the Income Summary account is to debit Income Summary and a credit to capital True or false
After closing entries are posted, the ending balance of Retained Earnings on the general ledger should: agree with the retained earnings balance in the income statement. be zero. agree with the retained earnings balance in the balance sheet. agree with the retained earnings balance in the statement of cash flows.
A. list all of the steps in the accounting cycle? B.Explain th e steps that must be taken for closing entries? C. Explain how one of the entries changes depending on if you have net income or net loss?
The balance in the Retained Earnings account represents: Select one: a. Accumulated revenues from all prior years of operations b. Accumulated earnings that have not been distributed to stockholders c. The amount of cash available for dividends d. Cash in the bank
If the company reports a net loss for the period, then the closing entries will result in an overall ____ to Retained Earnings. A. Debit B. Credit
The balance in the Income Summary account before it is closed will be equal to Question 1 options: A) the ending balance in the Owner's Capital account B) zero C) the beginning balance in the Owner's Capital account D) the Net Income or Net Loss on the Income Statement
When all expense accounts are closed, what account is debited? Each expense Income Summary Owners Withdrawal account Owners Capital account
The Income Summary is always closed into the Capital account by the amount of: Select one: Revenue minus expenses Total assets minus total liabilities plus owner’s equity The Net Income from the previous year’s closed accounts Liabilities minus Capital plus drawings

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If a business had a net loss for the year, what would be the closing entry to close income summary and transfer the net loss to the capital account?