Assume that the entry closing total revenues of $961,700 and total expenses of $747,600 has been...

 

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Assume that the entry closing total revenues of $961,700 and total expenses of $747,600 has been made for the year ending December 31. At the end of the fiscal year, Teresa Schafer, Capital has a credit balance of $1,431,000 and T Schafer, Drawing has a balance of $32,000. Required: (a) Joumalize the entry required to close the Teresa Schafer, Drawing account. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. (b) Determine the amount of Teresa Schafer, Capital at the end of the period. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Prepaid Insurance 14 Supplies 15 Land 16 Building 17 Accumulated Denreciation-Building REVENUE 41 Fees Earned 42 Rent Revenue EXPENSES 51 Salaries and Wages Expense 52 Advertising Expense 53 Utilities Expense Assume that the entry closing total revenues of $961,700 and total expenses of $747,600 has been made for the year ending December 31. At the end of the fiscal year, Teresa Schafer, Capital has a credit balance of $1,431,000 and T Schafer, Drawing has a balance of $32,000. Required: (a) Joumalize the entry required to close the Teresa Schafer, Drawing account. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. (b) Determine the amount of Teresa Schafer, Capital at the end of the period. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Prepaid Insurance 14 Supplies 15 Land 16 Building 17 Accumulated Denreciation-Building REVENUE 41 Fees Earned 42 Rent Revenue EXPENSES 51 Salaries and Wages Expense 52 Advertising Expense 53 Utilities Expense

Answer rating: 100% (QA)

a To close the Teresa Schafer Drawing account we need to transfer the balance to the Teres... View the full answer