Use the following adjusted trial balance to answer the question below.
-Which account bypasses the Income Summary account in the closing process?
A)John Clair,Withdrawals
B)Jet Ski Rentals
C)Depreciation Expense-Building
D)Wages Expense

Question

Use the following adjusted trial balance to answer the question below.  
-Which account bypasses the Income Summary account in the closing process?
A)John Clair,Withdrawals 
B)Jet Ski Rentals 
C)Depreciation Expense-Building 
D)Wages Expense

Quizplus · Accepted Answer

Withdrawals by the owner (John Clair, Withdrawals) bypass the Income Summary account during the closing process because they are directly closed to the owner's capital account, not affecting the company's income statement.

Use the Following Adjusted Trial Balance to Answer the Question