TB MC Qu$.6-58($Static$)$ The first two closing entries to$...$

The first two closing entries to the Income Summary account indicate a debit of $$47,000$ and a credit of $$41,000.$ The third closing entry would be:

Multiple Choice

debit Capital $$6,000$and credit Income Summary $$6,000.$

Correct

debit Capital $$47,000$and credit Income Summary $$47,000.$

debit Income Summary $$41,000$and credit Capital $$41,000.$

debit Income Summary $$6,000$and credit Capital $$6,000.$

Incorrect

Explanation

$$41,000$ credit $($total revenue$)$ $$47,000$ debit $($total expenses$)=$ $$6,000$ Net Loss.

This net loss was the debit balance of income summary after the second step of the closing process. Income summary then must be credited in the third step of the closing process to reduce its balance to zero, with an offsetting debit to the owner$$s capital account.