After Closing the Temporary Owners' Equity Accounts into Income Summary

question 2

Multiple Choice

After closing the temporary owners' equity accounts into Income Summary, and after allocating the net income and closing the partners' drawing accounts, assume the partners' capital accounts had credit balances as follows: Golden, $30,000; Chavez, $40,000; McGinnis, $55,000. If McGinnis retired and withdrew $50,000 in settlement of his/her equity, the amount entered in McGinnis's capital account would be a

• A) $5,000 credit.
• B) $50,000 credit.
• C) $55,000 debit.
• D) $55,000 credit.

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Definitions:

Social Media Site

An online platform that enables users to create and share content or participate in social networking with others.

Parallelism

Parallelism refers to the practice of ensuring elements in sentences are grammatically similar or identical in structure, sound, meaning, or meter to enhance coherence and balance.

Bank Debits

Transactions that reduce the account balance of a bank account, representing money that has been withdrawn or payments made.

Freight Loadings

The process or act of loading cargo for transport by various modes of transportation like trains, ships, or airplanes.