Suppose that you are doing the books for the accounting period and have a balance of 125,000 in your owner's equity account. What should you do with that balance?
a) Close the owner's equity account by transferring the balance to the income statement.
b) Leave the balance as is; it represents the owner's stake in the business.
c) Transfer the balance to the retained earnings account.
d) Withdraw the entire balance as profit.
