M.Smuts showed a net income of $6,000.The entry to close the Income Summary account would include a:

Question

Quizplus · Accepted Answer

The Income Summary account is used to transfer the net income (or loss) to the owner's capital account. In this case, since M.Smuts showed a net income of $6,000, we need to close the Income Summary account by debiting it for $6,000, and crediting M.Smuts Capital for $6,000, which represents the owner's share of the income. Therefore, both choices B and C are correct.

MSmuts Showed a Net Income of $6,000