Question

The entry to close the Income Summary account may include Multiple Choice a debit to Income Summary and a credit to the owner's capital account. a debit to Income Summary and a credit to the owner's drawing account. a debit to Income Summary and a credit to Cash. a debit to Cash and a credit to Income Summary.

Answer 1

Answer:

a debit to Income Summary and a credit to the owner's capital account.

Explanation:

The income summary is used to close the income statement. This is done by crediting income summary and debiting revenue, crediting expense and crediting income summary.

The balance in the income summary is the posted as part of the owners equity by debiting income summary and crediting a credit to the owner's capital account.