Olsteen Company Earned Revenues of $61,000 and Incurred Expenses of $71,000.No

question 3

Multiple Choice

Olsteen Company earned revenues of $61,000 and incurred expenses of $71,000.No withdrawals were taken.The owner did not make any new capital contributions during the year.The company is a sole proprietorship.Which of the following statements is correct?

• A) The entry to close Income Summary is the same regardless of a net income or a net loss.
• B) Olsteen, Capital will be debited for $10,000 and Income Summary will be credited for $10,000.
• C) The entries to close revenues and expenses will differ if there is a net loss.
• D) The entry to close Income Summary requires a debit to the Income Summary account.

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