Capri Company began the current period with a $30,000 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$118,000 Interest revenue$8,000 Salaries expense 37,500 K. Capri, Withdrawals 18,500 Depreciation expense 11,600 Utilities expense 5,400 1. After closing the revenue and expense accounts, what will be the balanceof the Income Summary account?Step 1: Close Revenues to Income SummaryStep 2: Close Expenses to Income SummaryDebitDebitCreditCreditIncome Summary 2. After all closing entries are journalized and posted, what will be thebalance of the K. Capri, Capital account?Step 3: Close Income Summary to CapitalStep 4: Close Withdrawals to CapitalIncome SummaryBeginning balanceDebitCreditK. Capri, Capital30,000

Closing entries are those which are recorded in the books to close the temporary accounts such as…

Answered: Capri Company began the current period…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Capri Company began the current period with a $30,000 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	$	118,000	Interest revenue	$	8,000
Salaries expense		37,500	K. Capri, Withdrawals		18,500
Depreciation expense		11,600	Utilities expense		5,400

1. After closing the revenue and expense accounts, what will be the balance
of the Income Summary account?
Step 1: Close Revenues to Income Summary
Step 2: Close Expenses to Income Summary
Debit
Debit
Credit
Credit
Income Summary

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
Step 4: Close Withdrawals to Capital
Income Summary
Beginning balance
Debit
Credit
K. Capri, Capital
30,000

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