On December 31, the Income Summary account of Madison Company has a debit balance of $111,000 after revenue of $117,000 and expe

Question

3 years ago

9

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

Business

1 answer:

loris [4] · Answer 1 · 2022-01-23T20:24:50+03:00

loris [4]3 years ago

8 0

Answer:

a) See the image attached for the sheet of closing entry

b) New balance = (174000-111000-12000) = 51000