Questions:
1. The _____is/are transferred from the income statement to the statement of owner's equity.
a. ending capital
b. withdrawals
c. net income
d. beginning capital
2. Revenues total $10,200, expenses total $7,300, and the owner's withdrawals account has a balance of $2,600. What is the balance in the income summary account prior to closing net income or net loss?
a. $2,900 debit
b. $300 debit
c. $2,900 credit
d. $300 credit
3. Revenues total $10,200, expenses total $7,300, and the owner's withdrawals account has a balance of $2,600. What is the balance in the income summary account after all closing entries are completed?
a. $2,600 credit
b. $2,900 debit
c. $2,900 credit
d. $ -0-
4. The balance in the Accumulated Depreciation account must be:
a. $8,050
b. $10,200
c. $65,250
d. impossible to determine with this data