Adam Smith has a Capital balance of $14,000 at the end of the business fiscal year July 31, 2023. The company’s adjusted account balances include the following temporary accounts with normal balances: Service fee earned................... $35,000 Salaries expense ............... ......$7,000 Telephone expense.....................$450 Insurance expense .....................$250 Adam Smith, withdrawals ..........$3,000 Utilities expense .................... $1,500 Required: From the above information; a) Prepare the closing entries for July 2023. b) After all the closing entries are journalized and posted, what is the balance of the Adam Smith’s Capital?
Adam Smith has a Capital balance of $14,000 at the end of the business fiscal year July 31, 2023. The company’s adjusted account balances include the following temporary accounts with normal balances: Service fee earned................... $35,000 Salaries expense ............... ......$7,000 Telephone expense.....................$450 Insurance expense .....................$250 Adam Smith, withdrawals ..........$3,000 Utilities expense .................... $1,500 Required: From the above information; a) Prepare the closing entries for July 2023. b) After all the closing entries are journalized and posted, what is the balance of the Adam Smith’s Capital?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Adam Smith has a Capital balance of $14,000 at the end of the business fiscal year July 31, 2023. The company’s adjusted account balances include the following temporary accounts with normal balances: Service fee earned................... $35,000 Salaries expense ............... ......$7,000 Telephone expense.....................$450 Insurance expense .....................$250 Adam Smith, withdrawals ..........$3,000 Utilities expense .................... $1,500 Required: From the above information; a) Prepare the closing entries for July 2023. b) After all the closing entries are journalized and posted, what is the balance of the Adam Smith’s Capital?
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