Question

Capri Company began the current period with a $41,000 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	$	112,000		Interest revenue	$	9,600
Salaries expense		47,000		K. Capri, Withdrawals		15,000
Depreciation expense		10,600		Utilities expense		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
0
0
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
	K. Capri, Capital
Beginning balance		41,000
		0

Answer 1