High Step Shoes Had Annual Revenues of $185,000,expenses of $103,700,and

question 182

Multiple Choice

High Step Shoes had annual revenues of $185,000,expenses of $103,700,and dividends of $18,000 during the current year.The retained earnings account before closing had a balance of $297,000.The entry to close the Income Summary account at the end of the year,after revenue and expense accounts have been closed,is:

• A)Debit Retained earnings $297,000; credit Income Summary $297,000
• B)Debit Retained earnings $63,300; credit Income Summary $63,300
• C)Debit Income Summary $63,300; credit Retained earnings $63,300
• D)Debit Income Summary $81,300,credit Retained earnings $81,300
• E)Debit Retained earnings $81,300; credit Income Summary $81,300