Johnson Company had the following account balances at the end of the most recent fiscal year: Cash: $4,300, Accounts Receivable: $1,200, Supplies: $200, Accounts Payable: $700, S. Johnson, Capital: $2,900, S. Johnson, Drawing: $300, Fees Income: $4,900, Rent Expense: $1,300, Advertising Expense: $1,000, Supplies Expense: $200. Assuming that these were the only accounts used by Johnson Company during the year, for which of the following steps in the closing process would a compound entry be necessary? Multiple Choice Step 1: Transfer Revenue Account Balances Step 2: Transfer Expense Account Balances Step 3: Transfer Net Income or Net Loss to Owner’s Equity Step 4: Transfer the Drawing Account Balance to Capital
Johnson Company had the following account balances at the end of the most recent fiscal year: Cash: $4,300,
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Step 1: Transfer Revenue Account Balances
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Step 2: Transfer Expense Account Balances
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Step 3: Transfer Net Income or Net Loss to Owner’s Equity
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Step 4: Transfer the Drawing Account Balance to Capital
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