The net income of Plum Consultancy is $500,000. The company has passed the closing entries for revenue and expense accounts. Which of the following is the closing entry to transfer the net income? a. A debit to Income Summary for $500,000 and a credit to Capital for $500,000 b. A debit to Consulting Revenue for $500,000 and a credit to Capital for $500,000 c. A debit to Capital for $500,000 and a credit to Consulting Revenue for $500,000 d. A debit to Capital for $500,000 and a credit to Income Summary for $500,000

The net income of Plum Consultancy is $500,000. The company has passed the closing entries for revenue and expense accounts. Which of the following is the closing entry to transfer the net income? a. A debit to Income Summary for $500,000 and a credit to Capital for $500,000 b. A debit to Consulting Revenue for $500,000 and a credit to Capital for $500,000 c. A debit to Capital for $500,000 and a credit to Consulting Revenue for $500,000 d. A debit to Capital for $500,000 and a credit to Income Summary for $500,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 10Q: After the first two closing entries are made, Income Summary has a debit balance of $22,750. What...

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