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High Step Shoes had annual revenues of $195,000, expenses of $108,700, and dividends of $22,000 during the current year. The retained earnings account before closing had a balance of $307,000. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, Is: Multiple Choice Debit Retained earnings $64,300; credit Income Summary $64,300 Debit Retained earnings $86,300; credit Income Summery $86,300 Debit Income Summery $86,300, credit Retained earnings $86,300 Debit Retained earnings $307,000; credit income Summary $307,000 Debit income Summary $64.300; credit Retained earnings $64,300

High Step Shoes had annual revenues of $195,000, expenses of $108,700, and dividends of $22,000 during the current year. The retained earnings account before closing had a balance of $307,000. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, Is: Multiple Choice Debit Retained earnings $64,300; credit Income Summary $64,300 Debit Retained earnings $86,300; credit Income Summery $86,300 Debit Income Summery $86,300, credit Retained earnings $86,300 Debit Retained earnings $307,000; credit income Summary $307,000 Debit income Summary $64.300; credit Retained earnings $64,300

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 5RE: Bloom Company had beginning unadjusted retained earnings of 400,000 in the current year. At the...
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High Step Shoes had annual revenues of $195,000, expenses of $108,700, and dividends of $22,000 during the current year. The retained earnings account before closing had a balance of $307,000. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is: Multiple Choice Debit Retained earnings $64,300; credit Income Summary $64,300 Debit Retained earnings $86,300; credit Income Summary $86,300 Debit Income Summary $86,300; credit Retained earnings $86,300 Debit Retained earnings $307,000; credit Income Summary $307,00o Debit Income Summary $64,300; credit Retained eanings $64,300 < Prev 30 of 30 xt MacBook Air
Transcribed Image Text:High Step Shoes had annual revenues of $195,000, expenses of $108,700, and dividends of $22,000 during the current year. The retained earnings account before closing had a balance of $307,000. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is: Multiple Choice Debit Retained earnings $64,300; credit Income Summary $64,300 Debit Retained earnings $86,300; credit Income Summary $86,300 Debit Income Summary $86,300; credit Retained earnings $86,300 Debit Retained earnings $307,000; credit Income Summary $307,00o Debit Income Summary $64,300; credit Retained eanings $64,300 < Prev 30 of 30 xt MacBook Air
Expert Solution
Step 1

Lets understand the basics.

Income statement summary is a summary which shows how much net income is there after deducting expenses from the revenue.

All the expense accounts are closed in income statement by debiting income statement and crediting expense accounts.

All the income accounts are closed in income statement by crediting income statement and debiting income accounts.

Net of the above transfer to retained earning by the either debiting or crediting the income statement and transfer it to retained earnings.

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