Question

High Step Shoes had annual revenues of $192,000, expenses of $107,200, and dividends of $20,800 during the current year. The retained earnings account before closing had a balance of $304,000. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is:

Answer 1

Answer:

Debit Income Summary $84,800, Credit High Step Shoes, Capital $84,800

Explanation:

Preparation of what The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is:

Debit Income Summary $84,800

Credit High Step Shoes, Capital $84,800

($192,000-$107,200)

(To close the Income Summary account )