The entry to close the owner's drawing account would include a debit to the
A) Income Summary account and a credit to the owner's drawing account.
B) owner's drawing account and a credit to Cash.
C) owner's capital account and a credit to the owner's drawing account.
D) owner's drawing account and a credit to the Income Summary account.

Question

Quizplus · Accepted Answer

Closing the owner's drawing account involves transferring any remaining balance in the account to the owner's capital account. Therefore, the entry should include a debit to the owner's capital account (to increase it) and a credit to the owner's drawing account (to decrease it). None of the other choices accurately reflect this process.

The Entry to Close the Owner's Drawing Account Would Include