Income Summary, before closing to Capital, contains a debit balance of $190 and a credit balance of $270. What is the entry to close Income Summary to Capital?
A) Debit Income Summary $190; credit Capital $270
B) Debit Income Summary $80 credit Capital $190
C) Debit Capital $80; credit Income Summary $80
D) Debit Income Summary $80; credit Capital $80

Question

Quizplus · Accepted Answer

The Income Summary account has a net credit balance of $80 ($270 credit - $190 debit). To close it, you debit Income Summary for $80 and credit Capital for $80.

Income Summary, Before Closing to Capital, Contains a Debit Balance