Which of the Following Is the Correct Closing Entry for a Profit

question 56

Multiple Choice

Which of the following is the correct closing entry for a profit of $105 300?

• A) No closing entry is required
• B) Debit profit or loss summary account $105 300; credit owner's capital account $105 300
• C) Debit owner's capital account $105 300; credit profit or loss summary account $105 300
• D) Debit owner's capital account $105 300; credit bank $105 300

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Definitions:

Constructive Conversation

A dialogue intended to build understanding, resolve conflicts, and lead to positive outcomes through collaborative communication.

Productive Enough

Achieving a level of productivity that meets the minimum requirements or expectations for a given task or goal.

Restructure Agreement

Restructure Agreement involves modifying the terms or conditions of an existing contract or agreement to better meet the needs or circumstances of the parties involved.

Original Issue

The initial problem, topic, or matter that prompts a discussion or negotiation.