aReAssignment/takeA and n.do true eBook Show Me How Closing Entries with Net Income Calculetor Assume...
90.2K
Verified Solution
Link Copied!
Question
Accounting
aReAssignment/takeA and n.do true eBook Show Me How Closing Entries with Net Income Calculetor Assume that the entry closing total revenues of $3,190,000 and total expenses of $2,350,000 has been made for the year. At the end of the ftscal year,Teress Schater, Capital he a balance of $1,885,000 and Teresa Schafer, Drawing has a balance of $770,000. a. Journalize the entry required to close the Teresa Schafer, Drawing account. Teresa Schafer, Capital 5,00) X 1 Income 1,815,000x Check My Work a. The net effect of the Income summary account needs to be determined. If the company shows net income the net balance is a credt The offsetting account to complete the closing entry for Income Summary is the owner's casital account. Also in clesing, the drawing and it is a net loss if the net biance a a deot account is closed to (or decreasesj the osnes capital account instead of Income ummary b. Determine the amount of Teresa Schafer, Capital at the end of the period. 1,815,000 X b. Similar to the Statement of Owners Equity, the amount of Teresa Schafer, Capital can be determined by the foowing equation: Ending Catal Sgning Catalers Net Income-Withdrawals. Check My Work Check My Wark 3 more Check My Work uses remaining All work saved
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
