Question 27 2.5 pts

How is Income Summary closed if the company had a net income?

Debit Capital; credit Withdrawals

Debit Withdrawals; credit Capital

Debit Income Summary; credit Capital

Debit Capital; credit Income Summary

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Question 28 2.5 pts

Adjusting entries from the worksheet:

are journalized and posted to the ledger.

affect only income statement accounts.

are posted directly to the ledger.

are closed to the Income Summary account.

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Question 29 2.5 pts

The goal of closing entries does NOT include:

to update the Capital account balance.

to clear the Withdrawals account.

to adjust assets and liability accounts to their beginning balances.

to clear revenue and expense accounts.

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Question 30 2.5 pts

The first step in the closing process is to:

close all balances on the income statement credit column of the worksheet except Income Summary.

close all balances on the income statement debit column of the worksheet except Income Summary.

transfer the balance from the Income Summary Account to the Capital Account.

transfer the balance of the Owner's Withdrawals Account to Capital.