Question

Exercise 4-5 Computing Income summary and ending capital balance from closing entries LO Capri Company began the current period with a $42.000 credit balance in the K. Capri. Capital account. At th the period, the company's adjusted account balances include the following temporary accounts with normal $112,000 $ 9,000 Service fees carned Salaries expense Depreciation expense 44,500 Interest revenue x. Capri, withdrawals Utilities expense 19,500 11,800 6,400 1. After closing the revenue and expense accounts, what will be the balance of the Income Summary account? Step 1: Close Revenues to Income Debit Credit Summary Service fees earned 112,000 Interest revenue 9,000 Income Summary 121,000 Debit Credit Step 2: Close Expenses to Income Summary Income Summary Salaries expense Depreciation expense Utilities expense 44,500 11,800 6.400 Income Summary 121,000 Revenues 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 Debit Credit Capital Income Summary K. Capri, Capital Step 4: Close Withdrawals to Capital K. Capri, Capital K. Capri, Withdrawals Beginning K. Capri, Capital 42,000 balance 0

Answer 1

D Credit c с Debit 1,12,000 9,000 53 1,21,000 62,700 60 44,500 11,800 6,400 А B 52 Step 1: Close revenues to income summary Service fees earned 54 Interest revenue 55 Income summary 56 57 Step 2: Close expenses to income summary 58 Income summary 59 Salaries expense Depreciatione expense 61 Utilities expense 62 63 64 Revenues 65 Expenses 66 67 Step 3: Close income summary to capital 68 Income summary 69 K.Capri Capital 70 Step 4: Close withdrawals to capital 71 K.Capri capital 72 K.Capri withdrawals 73 Income summary 1,21,000 62,700 58,300 58,300 58,300 19,500 19,500 74 75 76 Beginning balance Add: Income summary Less: K.Capri withdrawals Ending balance K.Capri Capital 42000 58300 19500 $80,800 77 78 79

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