The owner's Capital, Withdrawals, and Income Summary accounts for Harmon Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries: The total amount of expenses for the period is
A) $700.
B) $900.
C) $200.
D) $100.

Question

The owner's Capital, Withdrawals, and Income Summary accounts for Harmon Repair Company for the accounting period are presented below in T account form after the recording and posting of closing entries:  The total amount of expenses for the period is
A) $700. 
B) $900. 
C) $200. 
D) $100.

Quizplus · Accepted Answer

The total decrease in the owner's Capital account is $900 ($6,200 - $5,300), which indicates that the owner had net losses of $900 for the period. Since expenses reduce net income, the total amount of expenses for the period is also $900.

The Owner's Capital, Withdrawals, and Income Summary Accounts for Harmon