Capri Company began the current period with a $20,000 credit balance in the Retained Earnings account. At the end of the period, the company's adjusted account balances include the following temporary accounts with normal balances. Services revenue Salaries expense Depreciation expense 1. After closing the revenue and expense accounts, what is the balance of the Income Summary account? Step 1: Close Revenues to Income Summary Step 2: Close Expenses to Income Summary $70,000 Interest revenue 38,000 Dividends 8,000 Utilities expense 0 0 Step 4: Close Dividends Beginning balance Dividends Debit Debit 2. After all closing entries are journalized and posted, what is the balance of the Retained Earnings account? Step 3: Close Income Summary to Retained earnings Credit Credit Income Summary Debit Credit Retained Earnings Account 20,000 0 $ 7,000 12,000 4,600

Capri Company began the current period with a $20,000 creda bolance in the Retained Earnings account. At the end of the period, the company's adjusted account balances include the following tempcrary accounts with normal balances