J. Oakely showed a net loss of $5,500. The entry to close the Income Summary account would include a:
A) debit to Oakely, Capital, $5,500.
B) debit to Income Summary, $5,500.
C) credit to Oakely, Capital, $5,500.
D) credit to Cash, $5,500.

Question

Quizplus · Accepted Answer

The Income Summary account is closed by transferring its balance to the Capital account. Since the balance is a loss, it will be debited to the Capital account.

J Oakely Showed a Net Loss of $5,500