On December 31, the Income Summary account of Madison Company has a debit balance of $111,000 after revenue of $117,000 and expe
nses of $228,000 were closed to the account. Madison Wells, Drawing has a debit balance of $12,000 and Madison Wells, Capital has a credit balance of $174,000. Required: Record the journal entries necessary to complete closing the accounts. What is the new balance of Madison Wells, Capital
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Answer:
Check the explanation
Explanation:
When it comes to journal entry, it involves keeping or making or creating records of whichever transactions either an Economic transaction or a non economic one. The transactions are scheduled in an accounting journal which reveals an organization’s credit and debit balances.
The diagram showing the journal entry for recording the issuance of the shares can be seen in the attached image below.
