QuestionJune 12, 2025

Daniel Repair Company's beginning capital account is 1,500 . At the end of the closing cycle, the capital balance was 2,600 . What would be the closing entry from the income summary account if there were no withdrawals? Income Summary 2,600 Daniel Capital Account 2,600 Income Summary 1,100 Daniel Capital Account 1,100 Daniel Capita Account 2,600 Income Summary 2,600

Daniel Repair Company's beginning capital account is 1,500 . At the end of the closing cycle, the capital balance was 2,600 . What would be the closing entry from the income summary account if there were no withdrawals? Income Summary 2,600 Daniel Capital Account 2,600 Income Summary 1,100 Daniel Capital Account 1,100 Daniel Capita Account 2,600 Income Summary 2,600
Daniel Repair Company's beginning capital
account is 1,500 . At the end of the closing
cycle, the capital balance was 2,600 . What
would be the closing entry from the income
summary account if there were no
withdrawals?
Income Summary 2,600
Daniel Capital Account
 2,600
Income Summary 1,100
Daniel Capital Account
 1,100
Daniel Capita Account
 2,600
Income Summary
 2,600

Solution
4.6(257 votes)

Answer

The closing entry from the income summary account is ( \1,100 ). Explanation 1. Determine the Change in Capital Calculate the change in capital by subtracting the beginning capital from the ending capital: ( \2,600 - \1,500 = \1,100 ). 2. Identify the Closing Entry Since there were no withdrawals, the entire change in capital is due to net income. Therefore, the closing entry from the income summary account is equal to the change in capital, which is ( \1,100 ).

Explanation

1. Determine the Change in Capital<br /> Calculate the change in capital by subtracting the beginning capital from the ending capital: ( \$2,600 - \$1,500 = \$1,100 ).<br /><br />2. Identify the Closing Entry<br /> Since there were no withdrawals, the entire change in capital is due to net income. Therefore, the closing entry from the income summary account is equal to the change in capital, which is ( \$1,100 ).
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