A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below. What amount will be posted to Tricia DeBarre, Capital in the process of closing the Income Summary account? (Assume all accounts have normal balances.)
A) $16,780 debit.
B) $7,180 credit.
C) $16,780 credit.
D) $18,280 credit.
E) $23,780 credit.

Question

A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below. What amount will be posted to Tricia DeBarre, Capital in the process of closing the Income Summary account? (Assume all accounts have normal balances.) 
A) $16,780 debit. 
B) $7,180 credit. 
C) $16,780 credit. 
D) $18,280 credit. 
E) $23,780 credit.

Quizplus · Accepted Answer

To calculate the amount posted to Tricia DeBarre, Capital in the process of closing Income Summary account, we need to first determine the balance of the Income Summary account.

Income Summary account = (Revenue - Expenses) = $90,500 - $73,720 = $16,780 (credit balance)

This amount will be credited to the Tricia DeBarre, Capital account during the closing process, so the answer is C, $16,780 credit.

A Company's Ledger Accounts and Their End-Of-Period Balances Before Closing