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Alexis Wesson, the bookkeeper for Home Interiors, has just finished posting the closing entries for the year to the ledger. She is concerned about the following balances: Capital account balance in the general ledger: Ending capital balance on the statement of owner's equity: Alexis knows that these amounts should agree and asks for your assistance in reviewing her work. Your review of the general ledger of Home Interiors reveals a beginning capital balance of $100,000. You also review the general journal for the accounting period and find the closing entries shown below. Date December 31, 20X1 December 31, 20X1 GENERAL JOURNAL Description Closing Entries Fees income Accumulated depreciation Account payable Income summary Income summary Salaries expense Supplies expense Depreciation expense Beatrice Sanders, Drawing Debit 201,950 17,850 67,700 $ 202,700 117,150 184,800 Page 15 Credit 287,500 158,550 10,000 4,800 11,450 Required: 2. Prepare a general journal entry to correct the errors made. 3. Reconcile the balance of capital account in the ledger after closing entries have been posted and the ending capital balance of owner's equity.

Alexis Wesson, the bookkeeper for Home Interiors, has just finished posting the closing entries for the year to the ledger. She is concerned about the following balances: Capital account balance in the general ledger: Ending capital balance on the statement of owner's equity: Alexis knows that these amounts should agree and asks for your assistance in reviewing her work. Your review of the general ledger of Home Interiors reveals a beginning capital balance of $100,000. You also review the general journal for the accounting period and find the closing entries shown below. Date December 31, 20X1 December 31, 20X1 GENERAL JOURNAL Description Closing Entries Fees income Accumulated depreciation Account payable Income summary Income summary Salaries expense Supplies expense Depreciation expense Beatrice Sanders, Drawing Debit 201,950 17,850 67,700 $ 202,700 117,150 184,800 Page 15 Credit 287,500 158,550 10,000 4,800 11,450 Required: 2. Prepare a general journal entry to correct the errors made. 3. Reconcile the balance of capital account in the ledger after closing entries have been posted and the ending capital balance of owner's equity.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Alexis Wesson, the bookkeeper for Home Interiors, has just finished posting the closing entries for the year to the ledger. She is concerned about the following balances: Capital account balance in the general ledger: Ending capital balance on the statement of owner's equity: Alexis knows that these amounts should agree and asks for your assistance in reviewing her work. Your review of the general ledger of Home Interiors reveals a beginning capital balance of $100,000. You also review the general journal for the accounting period and find the closing entries shown below. Date December 31, 20x1 December 31, 20X1 GENERAL JOURNAL Description Closing Entries Fees income Accumulated depreciation Account payable Income summary Income summary Salaries expense Supplies expense Depreciation expense Beatrice Sanders, Drawing Debit 201,950 17,850 67,700 $ 202,700 117,150 184,800 Page 15 Credit 287,500 158,550 10,000 4,800 11,450 Required: 2. Prepare a general journal entry to correct the errors made. 3. Reconcile the balance of capital account in the ledger after closing entries have been posted and the ending capital balance of owner's equity.
Transcribed Image Text:Alexis Wesson, the bookkeeper for Home Interiors, has just finished posting the closing entries for the year to the ledger. She is concerned about the following balances: Capital account balance in the general ledger: Ending capital balance on the statement of owner's equity: Alexis knows that these amounts should agree and asks for your assistance in reviewing her work. Your review of the general ledger of Home Interiors reveals a beginning capital balance of $100,000. You also review the general journal for the accounting period and find the closing entries shown below. Date December 31, 20x1 December 31, 20X1 GENERAL JOURNAL Description Closing Entries Fees income Accumulated depreciation Account payable Income summary Income summary Salaries expense Supplies expense Depreciation expense Beatrice Sanders, Drawing Debit 201,950 17,850 67,700 $ 202,700 117,150 184,800 Page 15 Credit 287,500 158,550 10,000 4,800 11,450 Required: 2. Prepare a general journal entry to correct the errors made. 3. Reconcile the balance of capital account in the ledger after closing entries have been posted and the ending capital balance of owner's equity.
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