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41) Jackson Services Company earned revenues of $104,000, incurred expenses of $113,000. The owner made withdrawals of $4,000. There were no new capital contributions during
41) Jackson Services Company earned revenues of $104,000, incurred expenses of $113,000. The owner made withdrawals of $4,000. There were no new capital contributions during the year. The company is a sole proprietorship. Which of the following statements is correct? A) A debit is needed to zero out the balance of the Income Summary account. B) Jackson, Capital will decrease $13,000.; C) Jackson has incurred a net loss of $5,000. D) When compared to a business that earned net income, the only closing entry that differs is the one to close the owner's withdrawals; E) None of the above
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