The First Two Closing Entries to the Income Summary Account

question 39

Multiple Choice

The first two closing entries to the Income Summary account indicate a debit of $47,000 and a credit of $41,000. The third closing entry would be:

• A)debit Income Summary $41,000; credit Expenses $41,000
• B)debit Capital $6,000; credit Income Summary $6,000
• C)debit Income Summary $6,000; credit Drawing $6,000
• D)debit Income Summary $47,000; credit Capital $47,000

---

Definitions:

Personal Experience

An individual's direct involvement or encounter with events or phenomena, shaping their perception and understanding.

Illustrate Each

To provide examples or visual representations for each item in a specified list to enhance understanding or clarification.

Observable Culture

The visible elements of an organization's culture, such as rituals, behaviors, and symbols that can be witnessed by outsiders.

Core Culture

The fundamental values, beliefs, and behaviors that are shared among members of an organization.