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Mila [183]
3 years ago
7

The income summary account has a debit balance of $10,000 prior to closing. the owner's drawing account has a balance of $7,000

before closing. the owner's capital account will
Business
1 answer:
lana [24]3 years ago
5 0

Decrease by $17,000.

An income summer with a debit balance means that the company had a loss in that accounting cycle. In order to close an income summary with a debit balance you need to credit the income summary account and debit the capital account, which decreases the owner’s equity.

The drawing account is the money that the owner has withdrawn from the company. In order to close this account you will need to credit drawing and debit the capital account, which decreases the balance.

Both items will decrease the capital account, for a total of $17,000.

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Answer:

D. Increase; increase

Explanation:

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<u>“social role theory”</u>

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3 years ago
Chavoy Corporation was organized on July 1. The company's charter authorizes 100,000 shares of $10 par value common stock. On Au
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Answer:

August 1

Dr Legal Expense $9,600

Cr Common stock $8,000

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Explanation:

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(To record stock issuances)

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Cr Common stock $30,000

(3,000shares*$10 par value)

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3 years ago
The study of international business is fine if you are going to work in a large multinational corporation, but it has no relevan
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Answer:.The study of international business has more relevance to the individual than its accruing benefits to the company

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The answer to this is D, Performing.

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3 years ago
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