The Income Summary account has a credit balance of $25,000 after the revenue and expense accounts have been closed.Which of the following is credited to close the Income Summary account?
A) Owner, Withdrawals
B) Sales Revenue
C) Cost of Goods Sold
D) Owner, Capital

Question

Quizplus · Accepted Answer

The Income Summary account, which shows a credit balance (indicating a profit), is closed to the Owner's Capital account to reflect the increase in equity resulting from the period's earnings.

The Income Summary Account Has a Credit Balance of $25,000