[tommie123]

1. A company's ledger accounts and their end-of-period balances before closing entries are posted are shown below. What amount will be posted to Tricia DeBarre, Capital in the process of closing the Income Summary account? (Assume all accounts have normal balances.


A. $16,780 debit.
B. $7,180 credit.
C. $16,780 credit.
D. $18,280 credit.
E. $23,780 credit.

[pready]

You need to close out your revenues and expenses to your Income Summary Account along with cash dividends paid, then close out your Income Summary Account to your Retained Earnings account.

Hint: the difference between your revenues and your expenses is known as net income. Net Income minus dividends is added to retained earnings.