If the adjusting entry to transfer net income/owner's equity into the owner's capital account is made prior to the end of the year, the Balance Sheet shows _______.
A)Owner's Equity
B)Net Income
C)both Net Income and Owner's Equity
D)none of the above because the income/earnings has been transferred into capital

Question

Quizplus · Accepted Answer

The adjusting entry to transfer net income/owner's equity into the owner's capital account is made prior to the end of the year, the Balance Sheet shows both Net Income and Owner's Equity.

If the Adjusting Entry to Transfer Net Income/owner's Equity into the Owner's