To determine the closing entry from the income summary account, we first need to understand how the capital account increased from the beginning balance to its ending balance.
- Beginning capital account: $1,500
- Ending capital account: $2,600
To find the increase in the capital account, we calculate:
\[ \text{Increase in Capital} = \text{Ending Capital} - \text{Beginning Capital} \]
\[ \text{Increase in Capital} = 2,600 - 1,500 = 1,100 \]
This increase of $1,100 represents the net income for the period because there were no withdrawals.
Next, the closing entry from the income summary account to the capital account reflects this net income. Thus, the correct closing entry would be:
Income Summary $1,100
Daniel Capital Account $1,100
Therefore, based on the options provided, the correct closing entry is:
Income Summary $1,100 Daniel Capital Account $1,100