Olsteen Company earned revenues of $61,000 and incurred expenses of $71,000. No withdrawals were taken. The owner did not make any new capital contributions during the year. The company is a sole proprietorship. Which of the following statements is correct?

Group of answer choices

The entry to close Income Summary is the same regardless of a net income or a net loss.

The entry to close Income Summary requires a debit to the Income Summary account.

Olsteen, Capital will be debited for $10,000 and Income Summary will be credited for $10,000.

The entries to close revenues and expenses will differ if there is a net loss.

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Jackson Services Company earned revenues of $104,000, incurred expenses of $113,000. The owner made withdrawals of $4000. There were no new capital contributions during the year. The company is a sole proprietorship. Which of the following statements is correct?

Group of answer choices

Jackson has incurred a net loss of $5000.

A debit is needed to zero out the balance of the Income Summary account.

Jackson, Capital will decrease $13,000.

When compared to a business that earned net income, the only closing entry that differs is the one to close the owner's withdrawals.

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A worksheet can be used to help prepare the financial statements.

Group of answer choices

True

False

The financial statement that reports assets, liabilities, and owner's equity as of the last day of the period is called the ________.

Group of answer choices

income statement

statement of owner's equity

balance sheet

unadjusted trial balance