I am completely confused about the process of closing and financial statements.
ID: 2443398 • Letter: I
Question
I am completely confused about the process of closing and financial statements. I have done ok on the worksheet until i made it to the Capital and Income Summary.
The adjusted trial balance for Salonika Marketing Co. follows. Complete the four right-most columns of the table by first entering information for the four closing entries and second by completing the post-closing trial balance. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
I have all the answers except The capital, and the income summary. Those are the two i cant figure out how to get.
No. Account Title AdjustedTrial Balance Closing Entry
Information Post-Closing
Trial Balance Dr. Cr. Dr. Cr. Dr. Cr. 101 Cash $ 9,800 106 Accounts receivable 27,000 153 Equipment 45,000 154 Accd. depreciation—Equipment $ 20,500 193 Franchise 40,000 201 Accounts payable 14,800 209 Salaries payable 4,100 233 Unearned fees 3,000 301 E. Salonika, Capital 95,000 302 E. Salonika, Withdrawals 15,900 401 Marketing fees earned 70,300 611 Depreciation expense—Equipment 32,900 622 Salaries expense 14,000 640 Rent expense 13,600 677 Miscellaneous expenses 9,500 901 Income summary Totals $ 207,700 $ 207,700
Explanation / Answer
Incomes: Marketing fees earning $70,300 Expenditure: Depreciation expenses $32,900 Rent expenses $13,600 Miscellaneous expenses $9,500 Salaries expenses $14,000 Total expenses 70,000 Net income $300 Balance sheet Assets: Current assets cash $9,800 Accounts receivable $27,000 Total current assets $36,800 Franchise $40,000 Equipment $45,000 Less:Accumulated depreciation $20,500 $24,500 Total assets $101,300 Liabilities: Current liabilities Accounts payable $14,800 Salaries payable $4,100 Unearned fees $3,000 total current liabilities $21,900 E.Salonika Capital $95,000 Add: Net income $300 $95,300 Less:E.Salonika Drawings $15,900 Stock holders capital and retained earnings $79,400 Total liabilities and stock hoders equity $101,300
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