The Accountant of Randy's Flooring Has Closed All of the Temporary

question 11

Multiple Choice

The accountant of Randy's Flooring has closed all of the temporary income statement accounts. The accountant is now ready to close the Income Summary account. The owner of the company is
R. Car. Using the Income Summary T-account below, determine the correct closing entry the accountant needs to make in order to close the account.
Income Summary

---

Definitions:

Reporting Date

The specific date on which a company's financial position is officially recorded and reported, often used in financial statements and reporting documents.

Earnings Surprise

When a company's actual reported financial results deviate from the expected figures, leading to an unexpected increase or decrease in its stock price.

Future Earnings

The projected income a company is expected to earn at a future date.

Incorrect Estimates

Errors or inaccuracies in predicting financial outcomes or assumptions, which can impact the financial statements and decision-making.