Table 13-9
Following Is the JenWu Corporation December 31, 2017

Table 13-9
Following is the JenWu Corporation December 31, 2017 shareholders' equity section of the balance sheet, prior to the closing entries:
$$\begin{array} { | l | r | } \hline \text { Contributed capital: } & \\\hline \text { Preferred shares, cumulative, } \$ 5.00,6,000 \text { shares outstanding, } & \\\hline \text { liquidation value } \$ 42 \text { per share } & \$ 220,000 \\\hline \text { Common shares, } 30,000 \text { shares outstanding } & 500,000 \\\hline \text { Retained earnings/(deficit) } & ( 240,000 ) \\\hline\end{array}$$ Note: No dividends were declared in 2015 or 2016. The net income for 2017 was $260,000.
-Referring to Table 13-9,what is the journal entry to close the Income Summary account?

A) $$\begin{array} { | c | r | r | } \hline \text { Dr. Retained Earnings } & 260,000 & \\\hline \text { Cr. Income Summary } & & 260,000 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Dr. Retained Earnings } & 350,000 & \\\hline \text { Cr. Preferred Dividend Payable } & & 90,000 \\\hline \text { Cr. Income Summary } & & 260,000 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Dr. Income Earnings } & 260,000 & \\\hline \text { Cr. Retained Earnings } & & 260,000 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Dr. Income Summary } & 260,000 & \\\hline \text { Cr. Preferred Dividend Expense } & & 90,000 \\\hline \text { Cr. Retained Earnings } & & 170,000 \\\hline\end{array}$$