Question

please complete

Capri Company began the current period with a $40,000 credit balance in the K. Capri, Capital account. At the end of the period, the company's adjusted account balances include the following temporary accounts with normal balances. Service fees earned $ Salaries expense Depreciation expense Interest revenue 47,500 K. Capri, Withdrawals 10, 600 Utilities expense 9,000 17,000 5,200 1. After closing the revenue and expense accounts, what will be the balance of the Income Summary account? Step 1: Close Revenues to Income Summary Debit Credit Step 2: Close Expenses to Income Summary Debit Credit Income Summary 2. After all closing entries are journalized and posted, what will be the balance of the K Capri, Capital account? Step 3: Close Income Summary to Capital Debit Credit Step 4: Close Withdrawals to Capital Debit Credit K. Capri, Capital 40,000 Beginning balance

Answer 1

Solution:

1.)

Step: 1 Close Revenue to income summary	Debit ($)	Credit ($)
Service fees earned	110,000
Interest revenue	9,000
Income summary		119,000
Step:2 Close expenses to income summary	Debit($)	Credit ($)
Income summary	63,300
Salaries expenses		47,500
Depreciation expenses		10,600
Utilities expenses		5,200
	Income summary
Revenues		$119,000
Expenses	$63,300
Balance		$55,700

2.

Step: 3 Close income statement to capital	Debit ($)	Credit($)
Income summary	55,700
K. Capri, capital		55,700
Step:4 Close withdrawals to capital
K. Capri capital	17,000
K. Capri withdrawals		17,000
	K. Capri, Capital
Beginning balance		40,000
Net income		55,700
Withdrawals	17,000
Balance		78,700