Based on the entries given, the balances when posted in T-accounts would be:
Owner's Capital a/c
Drawings $2,000 Balance c/d $30,000
Balance b/f <u> $40,000 </u> Income summary <u> $12,000</u>
<u> $42,000 </u> <u> $42,000</u>
Service revenue a/c
Cash $58,000
Profit and loss account <u> $58,000</u> <u> </u>
<u> $58,000 </u> <u> $58,000</u>
Salaries and Wages
Cash <u> $39,000 </u> Income summary<u> $39,000</u>
<u> $39,000 </u> <u> $39,000</u>
Supplies a/c
Cash <u> $ 7,000 </u> Income summary <u> $7,000</u>
<u> $7,000 </u> <u> $ 7,000</u>
Income summary a/c
Salaries and wages $39,000 Service revenue $58,000
Supplies expense $7,000
Capital a/c <u> $12,000 </u> <u> </u>
<u> $58,000 </u> <u> $58,000</u>
Journal entries will be:
Date Account title Debit Credit
Owner's capital $2,000
Drawings $2,000
Date Account title Debit Credit
Income summary $46,000
Salaries and wages expense $39,000
Supplies expense $7,000
Date Account title Debit Credit
Service revenue $58,000
Income summary $58,000
Date Account title Debit Credit
Income summary $12,000
Owner's capital $12,000
<h3>What would be the closing balances?</h3>
The closing balance will close off the temporary accounts which include expense accounts such as salaries and wages, and supplies. They will be sent to the Income summary account.
The owner's capital account will receive the profit for the period and will be debited for any drawings made. Accounts should always balance as shown above.
Find out more on closing account balances at brainly.com/question/24914390.
