Ask Question
3 June, 01:28

Assume that the entry closing total revenues of $3,190,000 and total expenses of $2,350,000 has been made for the year. At the end of the fiscal year, Teresa Schafer, Capital has a credit balance of $1,885,000 and Teresa Schafer, Drawing has a balance of $770,000. (a) Journalize the entry required to close the Teresa Schafer, Drawing account. (b) Determine the amount of Teresa Schafer, Capital at the end of the period.

+3
Answers (1)
  1. 3 June, 04:36
    0
    See explanation section

    Explanation:

    A) Closing Journal entry to record of closing the journal entry -

    Debit Teresa Schafer, Capital $770,000

    Credit Teresa Schafer, Drawing $770,000

    (To close the drawing accounts to capital account)

    B) Teresa Schafer, Opening Capital $1,885,000

    Add: Net Income = $840,000

    Less: Drawings = $ (770,000)

    Capital at the end of the period = $1,955,000

    Note: Calculation of Net Income

    Revenues $3,190,000

    Expenses $ (2,350,000)

    Net Income $840,000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Assume that the entry closing total revenues of $3,190,000 and total expenses of $2,350,000 has been made for the year. At the end of the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers