Final answer:
The balance in the income summary before it is closed to capital would be $17,000.
Step-by-step explanation:
To determine the balance in the income summary before it is closed to capital, you need to subtract the total expenses and withdrawals from the total revenues. The formula is:
Income Summary Balance=Revenues−(Expenses + Withdrawals)
Income Summary Balance=Revenues−(Expenses + Withdrawals)
Given the values: Income Summary Balance=$50,000−($30,000+$3,000)
Income Summary Balance=$50,000−($30,000+$3,000)
Income Summary Balance=$50,000−$33,000
Income Summary Balance=$50,000−$33,000
Income Summary Balance=$17,000
Income Summary Balance=$17,000
Therefore, the correct answer is:
b. $17,000
The income summary serves as a crucial intermediary step in the accounting process, facilitating accurate financial reporting and analysis.