If the Adjusting Entry to Transfer Net Income/owner's Equity into the Owner's

Multiple Choice

If the adjusting entry to transfer net income/owner's equity into the owner's capital account is made prior to the end of the year, the Balance Sheet shows _______.

A) Owner's Equity
B) Net Income
C) both Net Income and Owner's Equity
D) none of the above because the income/earnings has been transferred into capital