Exercise 4-5 Determining effects of closing entries LO C1

Capri Company began the current period with a $20,000 credit balance in the K. Capri, Capital account. At the end of the period, the companys adjusted account balances include the following temporary accounts with normal balances.

Service fees earned Salaries expense Depreciation expense $ 7,000 12,000 4,600 $70,000 Interest revenue 38,000 K. Capri, Withdrawals 8,000 Utilities expense 1. After closing the revenue and expense accounts, what will be the balance of the Income Summary account? Step 1: Close Revenues to Income Summary Debit Credit Step 2: Close Expenses to Income Summary Debit Credit ncome Summary 2. After all closing entries are journalized and posted, what will be the balance of the K. Capri, Capital account? Step 3: Close Income Summary to Capital Debit Credit Step 4: Close Withdrawals to Capital