For the year ended December 31, a company has revenues of $317,000 and expenses of $196,000. The owner withdrew $50,000 during the year. The balance in the owner's capital account before closing is $81,000. Which of the following entries would be used to close the withdrawal account?
A) Debit Owner's Capital $81,000; credit Income Summary $81,000.
B) Debit Income Summary $50,000; credit Owner's, Capital $50,000.
C) Debit Income Summary $81,000, credit Owner's Withdrawals $81,000.
D) Debit Owner's Capital $50,000; credit Owner Withdrawals $50,000.
E) Debit Owner's Withdrawals $50,000; credit Owner's Capital $50,000.

Question

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The Answer of For the year ended December 31, a company has revenues of $317,000 and expenses of $196,000. The owner withdrew $50,000 during the year. The balance in the owner's capital account before closing is $81,000. Which of the following entries would be used to close the withdrawal account?
A) Debit Owner's Capital $81,000; credit Income Summary $81,000.
B) Debit Income Summary $50,000; credit Owner's, Capital $50,000.
C) Debit Income Summary $81,000, credit Owner's Withdrawals $81,000.
D) Debit Owner's Capital $50,000; credit Owner Withdrawals $50,000.
E) Debit Owner's Withdrawals $50,000; credit Owner's Capital $50,000.

For the Year Ended December 31, a Company Has Revenues