At the end of the accounting period, but before the closing entries have been re
ID: 2481149 • Letter: A
Question
At the end of the accounting period, but before the closing entries have been recorded, Harry, the proprietor of Harry's Bar and Grill, has a debit of $36,750 in his drawing account and a credit of $189,300 in his capital account. If his capital account has a credit balance of $208,900 after the closing, what was his net income?
At the end of the accounting period, but before the closing entries have been recorded, Harry, the proprietor of Harry's Bar and Grill, has a debit of $36,750 in his drawing account and a credit of $189,300 in his capital account. If his capital account has a credit balance of $208,900 after the closing, what was his net income?
Explanation / Answer
Beginning Capital + Net Income - Drawings = Closing Capital
$189,000 + Net Income - $36,750 = $ 208,900
Net Income = $56,650
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.