Capri Company began the current period with a $37,000 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 $ 86,000 Interest revenue $ 11,800 Salaries expense 45,500 K. Capri, Withdrawals 15,000 Depreciation expense 11,600 Utilities expense 6,200
Capri Company began the current period with a $37,000 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 $ 86,000 Interest revenue $ 11,800 Salaries expense 45,500 K. Capri, Withdrawals 15,000 Depreciation expense 11,600 Utilities expense 6,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Capri Company began the current period with a $37,000 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 | $ | 86,000 | Interest revenue | $ | 11,800 | ||
| Salaries expense | 45,500 | K. Capri, Withdrawals | 15,000 | ||||
| 11,600 | Utilities expense | 6,200 | |||||
Transcribed Image Text:Capri Company began the current period with a $37,000 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
salaries expense
Depreciation expense
$86,000 Interest revenue
45,500 K. Capri, Withdrawals
11,600 Utilities expense
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
Step 4: Close Withdrawals to Capital
Debit
Beginning balance
Debit
$11,800
15,000
6, 200
Credit
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
Income Summary
Credit
K. Capri, Capital
37,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
I am a little confused where some of these numbers are coming from?
Can you please explain?
Solution
by Bartleby ExpertKnowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education