the entries to close Income Summary and the Owner's Drawings account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation (To close net income to Owner's Capital.) (To close Owner's Drawings to Owner's Capital.) Debit Credit

the entries to close Income Summary and the Owner's Drawings account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation (To close net income to Owner's Capital.) (To close Owner's Drawings to Owner's Capital.) Debit Credit

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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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Cullumber Company earned net income of $59,360 during 2020. The company had owner drawings totalling $37,100 during the period.

Prepare the entries to close Income Summary and the Owner's Drawings account. (Credit account titles are automatically indented when
the amount is entered. Do not indent manually. List all debit entries before credit entries.)
Account Titles and Explanation
(To close net income to Owner's Capital.)
(To close Owner's Drawings to Owner's Capital.)
Debit
Credit

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