Capri Company began the current period with a $37,000 credit balance in the K. Capri, Capital account. At the end of the period, the company’s adjusted account balances include the following temporary accounts with normal balances. Service fees earned $ 86,000 Interest revenue $ 11,800 Salaries expense 45,500 K. Capri, Withdrawals 15,000 Depreciation expense 11,600 Utilities expense 6,200

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Capri Company began the current period with a $37,000 credit balance in the K. Capri, Capital account. At the end of the period, the company’s adjusted account balances include the following temporary accounts with normal balances.
  

               
Service fees earned $ 86,000   Interest revenue $ 11,800  
Salaries expense   45,500   K. Capri, Withdrawals   15,000  
Depreciation expense   11,600   Utilities expense   6,200  
 
Capri Company began the current period with a $37,000 credit balance in the K. Capri, Capital account. At the end of the period, the
company's adjusted account balances include the following temporary accounts with normal balances.
Service fees earned
salaries expense
Depreciation expense
$86,000 Interest revenue
45,500 K. Capri, Withdrawals
11,600 Utilities expense
1. After closing the revenue and expense accounts, what will be the balance of
the Income Summary account?
Step 1: Close Revenues to Income Summary
Step 2: Close Expenses to Income Summary
Step 4: Close Withdrawals to Capital
Debit
Beginning balance
Debit
$11,800
15,000
6, 200
Credit
2. After all closing entries are journalized and posted, what will be the balance
of the K. Capri, Capital account?
Step 3: Close Income Summary to Capital
Debit
Credit
Income Summary
Credit
K. Capri, Capital
37,000
Transcribed Image Text:Capri Company began the current period with a $37,000 credit balance in the K. Capri, Capital account. At the end of the period, the company's adjusted account balances include the following temporary accounts with normal balances. Service fees earned salaries expense Depreciation expense $86,000 Interest revenue 45,500 K. Capri, Withdrawals 11,600 Utilities expense 1. After closing the revenue and expense accounts, what will be the balance of the Income Summary account? Step 1: Close Revenues to Income Summary Step 2: Close Expenses to Income Summary Step 4: Close Withdrawals to Capital Debit Beginning balance Debit $11,800 15,000 6, 200 Credit 2. After all closing entries are journalized and posted, what will be the balance of the K. Capri, Capital account? Step 3: Close Income Summary to Capital Debit Credit Income Summary Credit K. Capri, Capital 37,000
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