Oriole Company ended its fiscal year on July 31, 2022. The company’s adjusted trial balance as of the end of its fiscal year is as follows.Oriole CompanyAdjusted Trial BalanceJuly 31, 2022No. Account Titles Debit Credit101 Cash $8,200 112 Accounts Receivable 9,400 157 Equipment 16,100 158 Accumulated Depreciation—Equip. $7,400201 Accounts Payable 4,500208 Unearned Rent Revenue 1,500301 Owner’s Capital 44,600306 Owner’s Drawings 15,800 400 Service Revenue 64,700429 Rent Revenue 6,800711 Depreciation Expense 9,300 726 Salaries and Wages Expense 55,800 732 Utilities Expense 14,900 $129,500 $129,500 ### Posting to Owner's Capital and Income Summary AccountsWhen posting entries, ensure they follow the order of journal entries presented earlier. Use either a negative sign or parentheses for negative amounts (e.g., -45 or (45)).#### Owner’s Capital - Account No. 301| Date | Explanation | Debit | Credit | Balance ||---------|----------------------|-------|--------|---------|| July 31 | Balance | | 44600 | || July 31 | Close Drawings | 15800 | 28800 | || July 31 | Close Net Income/Loss| 8500 | 20300 | |#### Income Summary - Account No. 350| Date | Explanation | Debit | Credit | Balance ||---------|-----------------|-------|--------|---------|| July 31 | Close Revenues | | 64700 | || July 31 | Close Revenues | | 6800 | || July 31 | Close Expenses | 9300 | | |#### Details- **Owner’s Capital**: - Records the owner's equity in the business. - Includes entries for closing drawings and net income/loss adjustments.- **Income Summary**: - Summarizes revenues and expenses of a period. - Includes entries for closing revenues and expenses.Understanding these accounts is crucial to effectively managing and interpreting financial health in accounting.

A financial statement that details the amounts of cash and cash equivalents that enter and leave a…

Answered: riole Company ended its fiscal year on…

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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Oriole Company ended its fiscal year on July 31, 2022. The company’s adjusted trial balance as of the end of its fiscal year is as follows.

Oriole Company Adjusted Trial Balance July 31, 2022
No.	Account Titles	Debit	Credit
101	Cash	$8,200
112	Accounts Receivable	9,400
157	Equipment	16,100
158	Accumulated Depreciation—Equip.		$7,400
201	Accounts Payable		4,500
208	Unearned Rent Revenue		1,500
301	Owner’s Capital		44,600
306	Owner’s Drawings	15,800
400	Service Revenue		64,700
429	Rent Revenue		6,800
711	Depreciation Expense	9,300
726	Salaries and Wages Expense	55,800
732	Utilities Expense	14,900
		$129,500	$129,500

### Posting to Owner's Capital and Income Summary Accounts

When posting entries, ensure they follow the order of journal entries presented earlier. Use either a negative sign or parentheses for negative amounts (e.g., -45 or (45)).

#### Owner’s Capital - Account No. 301

| Date | Explanation | Debit | Credit | Balance |
|---------|----------------------|-------|--------|---------|
| July 31 | Balance | | 44600 | |
| July 31 | Close Drawings | 15800 | 28800 | |
| July 31 | Close Net Income/Loss| 8500 | 20300 | |

#### Income Summary - Account No. 350

| Date | Explanation | Debit | Credit | Balance |
|---------|-----------------|-------|--------|---------|
| July 31 | Close Revenues | | 64700 | |
| July 31 | Close Revenues | | 6800 | |
| July 31 | Close Expenses | 9300 | | |

#### Details

- **Owner’s Capital**:
- Records the owner's equity in the business.
- Includes entries for closing drawings and net income/loss adjustments.

- **Income Summary**:
- Summarizes revenues and expenses of a period.
- Includes entries for closing revenues and expenses.

Understanding these accounts is crucial to effectively managing and interpreting financial health in accounting.

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