Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $200,000,

Question

Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $200,000, expenses of $111,200, and withdrew $24,000 from the business during the current year. The owner’s capital account before closing had a balance of $312,000. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is:

Debit T. Westmont, Capital $312,000; credit Income Summary $312,000

Debit T. Westmont, Capital $64,800; credit Income Summary $64,800

Debit Income Summary $64,800; credit T. Westmont, Capital $64,800

Debit Income Summary $88,800, credit T. Westmont, Capital $88,800

Debit T. Westmont, Capital $88,800, credit Income Summary $88,800

Explanation / Answer

Debit Income Summary $88,800, credit T. Westmont, Capital $88,800 Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Dr Cr Income Summary Dr         111,200.00 To Expenses         111,200.00 Revenue Dr         200,000.00 To income Summary         200,000.00 Income Summary DR            88,800.00 To T. Westmont, Capital            88,800.00

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