Argosy Company began the current period with a $14,000 credit balance in the D.

Question

Argosy Company began the current period with a $14,000 credit balance in the D. Argosy, 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 $ 35,000 Interest revenue $ 3,500
Salaries expense 19,000 D. Argosy, Withdrawals 6,000
Depreciation expense 4,000 Utilities expense 2,300

After closing the revenue and expense accounts, what will be the balance of the Income Summary account? (Omit the "$" sign in your response.)

Credit balance $

After all closing entries are journalized and posted, what will be the balance of the D. Argosy, Capital account? (Omit the "$" sign in your response.)

Ending balance $

Explanation / Answer

The sequence of the closing process is as follows: 1. Close the revenue accounts to Income Summary. 2. Close the expense accounts to Income Summary. 3. Close Income Summary to Capital Account. mm/dd Service fees earned Dr 35000 Int Rev Dr 3500 Income Summary Cr 38500 To close Service fees earned $ 35,000 Interest revenue $ 3,500 accts mm/dd Income Summary Dr 25300 Salary Expenses Cr 19000 Dep exp Cr 4000 Utility exp Cr 2300 To close Salaries expense 19,000, Depreciation expense 4,000 Utilities expense 2,300 mm/dd Income Summary T- acct Debit Bal accts Dr 25300 Credit Bal accts Cr 38500 Balance Dr 13200 mm/dd Income Summary Dr 13200 D. Argosy, Capital account Cr 13200 mm/dd D. Argosy, Capital account Dr 6000 D. Argosy, Drawing account Cr 6000 CLosing D. Argosy withdrawls D. Argosy, Capital account T -acct will look like:- ------------------------------------------------ Dr Cr Opening Bal 14000 Drawing acct 6000 Income summary 13200 Closing Bal 21,200 After closing the revenue and expense accounts, what will be the balance of the Income Summary account? (Omit the "$" sign in your response.) Credit balance $ 13200 After all closing entries are journalized and posted, what will be the balance of the D. Argosy, Capital account? (Omit the "$" sign in your response.) Ending balance $21200

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