Question

Joshua Metal Company
Adjusted Trial Balance
for the Month Ending December 31, 2019
Account Title	Debit	Credit
100-Cash	3,650
101-Accounts Receivable	4,500
102-Supplies	6,800
103-Prepaid Rent	22,000
150-Computer (Cost)	85,000
151-Accumulated Depreciation		2,600
200-Accounts Payable		5,000
201-Unearned Revenue		12,600
202-Salaries & Wages Payable		8,700
300-Owner's Capital		125,000
301-Owner's Drawings	10,000
400-Product Revenue		75,000
404-Service Revenue		36,000
500-Telephone Expense	2,450
601-Salaries & Wages Expense	125,000
650-Supplies Expense	2,500
750-Depreciation Expense	500
790-Rent Expense	2,500
	264,900	264,900
Please prepare a journal entry to record the Net Income/(Loss)
Income Summary amount that will be closed out to Owner's Capital
(302-Income Summary)

Answer 1

Date	Account Titles and Explanations	Debit	Credit
31-Dec	Owner's capital	$21,950
	Income summary		$21,950
	(To close net loss)
	WORKING      NOTES:
	*Calculations of Net income / loss :
	Particulars	Amount	Amount
	Product revenue	$75,000
	Service revenue	$36,000
	Total revenue (a)		$111,000
	Less: Expesnes:
	Telephone expense	$2,450
	Salaries and wages expenses	$125,000
	Supplies expense	$2,500
	Depreciation expense	$500
	Rent expense	$2,500
	Total expenses (b)		$132,950
	Net loss (a - b)		-$21,950