Question
Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $196,000, expenses of $109,200, and withdrew $22,400 from the business during the current year.
Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $196,000, expenses of $109,200, and withdrew $22,400 from the business during the current year. The owners capital account before closing had a balance of $308,000. 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 $308,000; credit Income Summary $308,000
Debit T. Westmont, Capital $64,400; credit Income Summary $64,400
Debit Income Summary $64,400; credit T. Westmont, Capital $64,400
Debit Income Summary $86,800, credit T. Westmont, Capital $86,800
Debit T. Westmont, Capital $86,800, credit Income Summary $86,800
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