After preparing and posting the closing entries for revenues and expenses,the income summary account has a debit balance of $33,000.The entry to close the income summary account will be:
A)Debit Owner Withdrawals $33,000;credit Income Summary$33,000.
B)Debit Income Summary $33,000;credit Owner Withdrawals $33,000.
C)Debit Income Summary$33,000;credit Owner Capital $33,000.
D)Debit Owner Capital $33,000;credit Income Summary $33,000.
E)Credit Owner Capital $33,000;debit Owner Withdrawals $33,000.

Question

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The income summary account has a debit balance of $33,000 because the total expenses exceeded the total revenues. To close the account, we need to transfer the balance to the owner's capital account. Therefore, we need to debit Owner Capital $33,000 and credit Income Summary $33,000. Choice C is incorrect because we are not crediting the Owner Capital account. Choice A is incorrect because owner withdrawals are not related to closing entries. Choice B is incorrect because we are not debiting Owner Withdrawals account. Choice E is incorrect because we are not crediting Owner Withdrawals account.

After Preparing and Posting the Closing Entries for Revenues and Expenses,the