Coe Company Earned Net Income of $56000 During 2016

question 140

Essay

Coe Company earned net income of $56000 during 2016. The company had owner drawings totalling $35000 during the period. Prepare the entries to close Income Summary and the Owner's Drawings account.

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Definitions:

Credit Card

A payment card issued by financial institutions allowing the cardholder to borrow funds for purchases or cash advances.

Strict Product Liability

A legal doctrine that makes a manufacturer, distributor, or seller of a defective product liable for the damages caused by that product, regardless of fault.

Defective Condition

A condition that makes a product unreasonably dangerous to the consumer, user, or property. See product liability.

Unreasonably Dangerous

This term describes a product or condition that poses a significant risk of injury to individuals under normal use or foreseeable misuse, beyond what would be expected by the ordinary consumer.