DE5-15 Refer to the work sheet of Austin Sound Center in Exhibit 5-6. page 181. Based solely on the Income Statement columns of the work sheet, make two closing entries, as fol- lows: Journalize the closing entry for the first account listed that must be closed at the end of the period. Journalize the closing entry for the last account listed on the work sheet (not net income. which is not an account). All closing entries for revenues and expenses follow the pattern of the closing entries you just made. Now make the final two closing entries of Austin Sound Center: . Journalize the closing entry for the Owner's Withdrawals account. Journalize the closing entry for net income.

Set up a T-account for the Owner's Capital account, and insert the balance from the work sheet. Then post your closing entries to the Capital account. Its ending balance should be the same as the amount reported on Austin Sound's balance sheet in Exhibit 5-7 on page 182. Is it?