Accounting question -- Closing Owner's Capital?

Question

After closing entries are posted, the balance in the owner's capital account in the ledger will be equal to:

a) the beginning owner's capital reported on the owner's equity statement.

b) The amount of the owner's capital reported on the balance sheet.

c) zero.

d) the net income for the period.

Any help with an explanation is appreciated! I do select a best answer, so please answer seriously.

Answer 1

b).

a) is incorrect because the beginning capital balance does not reflect any capital transactions during the accounting period (i.e., stock dividends, stock buybacks).

c) is incorrect because the owner's capital is not closed with the closing entries. Only income statement items are closed.

d) is incorrect because net income is closed to retained earnings, not owner's capital.