The capital ledger accounts and post-closing entries are provided above: Where will the final capital balance of $163,600 be reported?What does the final capital balance of $163,600 reflect? Explain. A partial balance sheet was provided by Midtown for your review (see balance sheet below).What components are missing from the balance sheet? Why are they required? Explain.Complete the balance sheet for Midtown. Add the required information to the table provided below.On the balance sheet, which 2 accounts must equal the same amount? Why? Explain. The document appears to be a financial report related to Midtown Repair Company. The report title is "Complete Motown's Post-Closing Trial Balance" dated December 31, 2017.**Current Assets:**- Cash: $95,600- Notes Receivable: $50,000- Prepaid Insurance: $16,000- Total current assets: $161,600**Plant Assets:**- Equipment: $170,000- Less: Accumulated Depreciation - Equipment: ($57,000)- Total plant assets: $113,000**Total Assets:**- $218,600The table intended for the post-closing trial balance includes columns for Account Title, Debit, and Credit. The Totals section is provided, but no specific entries are shown. This structured trial balance helps in preparing financial statements and ensures that total debits equal total credits after closing entries are made. **Capital Ledger Accounts****C. Trout, Capital Account No. 301**| Date | Explanation | PR | Debit | Credit | Balance ||------------|----------------------------------|----|--------|--------|---------|| 2017 Jan. 1 | Beginning balance | | | | 178,500 || 2017 Dec. 31 | Close Income Summary | | | 15,100 | 193,600 || 2017 Dec. 31 | Close C. Trout, Withdrawals | | 30,000 | | 163,600 |**Explanation of the Ledger Table:**- **Date Column:** Lists the relevant transaction dates within the year 2017.- **Explanation Column:** Describes the nature of each transaction, such as beginning balance, closing income, and withdrawals.- **Debit and Credit Columns:** Indicate the amounts debited or credited, reflecting changes made to the account.- **Balance Column:** Shows the running balance in the account after each transaction.This table demonstrates typical transactions and adjustments made in a capital ledger, reflecting financial activities over a specified fiscal period.

Answer 1: The final capital balance of $163,600 will be reported on the Liability side of the…

Answered: The capital ledger accounts and…

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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The capital ledger accounts and post-closing entries are provided above:

Where will the final capital balance of $163,600 be reported?
1. What does the final capital balance of $163,600 reflect? Explain.

A partial balance sheet was provided by Midtown for your review (see balance sheet below).
1. What components are missing from the balance sheet? Why are they required? Explain.
2. Complete the balance sheet for Midtown. Add the required information to the table provided below.
3. On the balance sheet, which 2 accounts must equal the same amount? Why? Explain.

The document appears to be a financial report related to Midtown Repair Company. The report title is "Complete Motown's Post-Closing Trial Balance" dated December 31, 2017.

**Current Assets:**
- Cash: $95,600
- Notes Receivable: $50,000
- Prepaid Insurance: $16,000
- Total current assets: $161,600

**Plant Assets:**
- Equipment: $170,000
- Less: Accumulated Depreciation - Equipment: ($57,000)
- Total plant assets: $113,000

**Total Assets:**
- $218,600

The table intended for the post-closing trial balance includes columns for Account Title, Debit, and Credit. The Totals section is provided, but no specific entries are shown.

This structured trial balance helps in preparing financial statements and ensures that total debits equal total credits after closing entries are made.

**Capital Ledger Accounts**

**C. Trout, Capital Account No. 301**

| Date | Explanation | PR | Debit | Credit | Balance |
|------------|----------------------------------|----|--------|--------|---------|
| 2017 Jan. 1 | Beginning balance | | | | 178,500 |
| 2017 Dec. 31 | Close Income Summary | | | 15,100 | 193,600 |
| 2017 Dec. 31 | Close C. Trout, Withdrawals | | 30,000 | | 163,600 |

**Explanation of the Ledger Table:**

- **Date Column:** Lists the relevant transaction dates within the year 2017.
- **Explanation Column:** Describes the nature of each transaction, such as beginning balance, closing income, and withdrawals.
- **Debit and Credit Columns:** Indicate the amounts debited or credited, reflecting changes made to the account.
- **Balance Column:** Shows the running balance in the account after each transaction.

This table demonstrates typical transactions and adjustments made in a capital ledger, reflecting financial activities over a specified fiscal period.

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