Question
At the beginning of the year, a business had $140,000 in owner's equity on the balance sheet. During the year, the business recorded $125,000 in
At the beginning of the year, a business had $140,000 in owner's equity on the balance sheet. During the year, the business recorded $125,000 in service revenue and $3,000 in rent revenue. During the year, the business recorded $95,000 in wage expense, $41,000 in rent expense, and $13,000 in depreciation expense. The owner withdrew $15,000 during the year.
After closing entries are prepared for the revenue and expense accounts, the income summary account would have a ______[credit/debit] a balance of $______.
The business will report a______[profit/loss] for the year.
After closing entries are complete, the post-closing owner's equity balance would be $______.
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