Adam Smith has a Capital balance of $14,000 at the end of the business fiscal year July 31, 2023. The company’s adjusted account balances include the following temporary accounts with normal balances: Service fee earned................... $35,000 Salaries expense ............... ......$7,000 Telephone expense.....................$450 Insurance expense .....................$250 Adam Smith, withdrawals ..........$3,000 Utilities expense .................... $1,500 Required: From the above information; a) Prepare the closing entries for July 2023. b) After all the closing entries are journalized and posted, what is the balance of the Adam Smith’s Capital?

Adam Smith has a Capital balance of $14,000 at the end of the business fiscal year July 31, 2023. The company’s adjusted account balances include the following temporary accounts with normal balances: Service fee earned................... $35,000 Salaries expense ............... ......$7,000 Telephone expense.....................$450 Insurance expense .....................$250 Adam Smith, withdrawals ..........$3,000 Utilities expense .................... $1,500 Required: From the above information; a) Prepare the closing entries for July 2023. b) After all the closing entries are journalized and posted, what is the balance of the Adam Smith’s Capital?

Name: Adam Smith has a Capital balance of $14,000 at the end of the business
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Description: Adam Smith has a Capital balance of $14,000 at the end of the business fiscal year July 31, 2023. The company’s adjusted account balances include the following temporary accounts with normal balances: Service fee earned................... $35,000 Sal

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....

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