Question
For the year ended December 31, a company has revenues of $335,000 and expenses of $205,000. The owner withdrew $57,200 during the year. The balance
For the year ended December 31, a company has revenues of $335,000 and expenses of $205,000. The owner withdrew $57,200 during the year. The balance in the owners capital account before closing is $99,000. Which of the following entries would be used to close the withdrawal account?
Multiple Choice:
Debit Income Summary $57,200; credit Owners, Capital $57,200.
Debit Owners Capital $57,200; credit Owner's Withdrawals $57,200.
Debit Owners Capital $99,000; credit Income Summary $99,000.
Debit Income Summary $99,000, credit Owners Withdrawals $99,000.
Debit Owners Withdrawals $57,200; credit Owners Capital $57,200.
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