To close net income to owner's capital Income Summary is debited and Owner's Capital is credited.

Name: To close net income to owner's capital Income Summary is debited and Owner's Capital is credited.
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Question

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When closing net income to owner's capital, the Income Summary account is debited and the Owner's Capital account is credited. This is done to transfer the net income from the current period to the owner's equity account.

To Close Net Income to Owner's Capital Income Summary Is