A Business Has Beginning Capital of $100 000

Multiple Choice

A business has beginning Capital of $100 000. During the year, Sales revenues were $20 000, Sales returns and allowances were $300, Sales discounts were $700, Cost of sales were $12 000, and all other expenses totaled $4 500. $1 000 of drawings were taken. The fourth closing entry would include which of the following line items?

A) Credit to Income summary of $1 000
B) Debit to Capital of $16 500
C) Debit to Capital of $1 000
D) Debit to Income summary of $1 000