Question

Check my work Exercise 4-5 Computing income summary and ending capital balance from closing entries LO C1, P2 Capri Company began the current period with a $44,000 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. k Service fees earned Salaries expense Depreciation expense $102,000 Interest revenue 44,500 K. Capri, Withdrawals 8,400 Utilities expense $ 9,800 20,000 7,000 t nces 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 Debit Credit Step 2: Close Expenses to Income Summary < Prev 4 of 11 Next > 3 w N

Answer 1

Step-1 Debit Credit 102000 Closed revenue to Income summary Service Fees earned Interest revenue To Income summary 9800 111800 Step-2 Closed Expenses to Income summary Income summary salaries Expenses Depreciation Expenses utilities Expenses Debit Credit 59900 44500 8400 7000 Revenue Expenses Closing balance (retained Earning) Income summary 111800 59900 519001 Step-3 Closed income summary to capital income summary To K. capri Capital Debit Credit 51900 51900 Step-4 Closed Withdrawals to capital K. capri Capital To Withdrawals Debit Credit 20000 20000 Beginning Balance Income summary Withdrawals Closing Balance K. capri Capital 44000 51900 20000 75900