Question
Tara Westmont, the owner of Tiptoe Shoes, had annual revenues of $198,000, expenses of $110,200, and withdrew $23,200 from the business during the current year.
Tara Westmont, the owner of Tiptoe Shoes, had annual revenues of $198,000, expenses of $110,200, and withdrew $23,200 from the business during the current year. The owners capital account before closing had a balance of $310,000. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is:
Multiple Choice
Debit T. Westmont, Capital $64,600; credit Income Summary $64,600
Debit Income Summary $87,800, credit T. Westmont, Capital $87,800
Debit T. Westmont, Capital $310,000; credit Income Summary $310,000
Debit T. Westmont, Capital $87,800, credit Income Summary $87,800
Debit Income Summary $64,600; credit T. Westmont, Capital $64,600
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started