The balance in the J. Higgins, Withdrawals account was $3,200. The entry to close the account would include a:
A) debit to Income Summary, $3,200.
B) credit to Income Summary, $3,200.
C) debit to J. Higgins, Capital, $3,200.
D) debit to J. Higgins, Withdrawals, $3,200.

Question

Quizplus · Accepted Answer

C) debit to J. Higgins, Capital, $3,200. This entry reduces the owner's capital account by the amount of the withdrawals, effectively closing the J. Higgins, Withdrawals account by transferring its balance to the owner's capital account.

The Balance in the J