Exercise 6.7 (Algo) Closing entries. LO 6-1

On December 31, the Income Summary account of Madison Company has a debit balance of $31,000 after revenue of $33,000 and expenses of $64,000 were closed to the account. Madison Wells, Drawing has a debit balance of $3,400 and Madison Wells, Capital has a credit balance of $52,000.

1. Record the journal entries necessary to complete closing the accounts. 2. What is the new balance of Madison Wells, Capital? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Record the journal entries necessary to complete closing the accounts. View transaction list Journal entry worksheet Record the closing entry for the balance of income summary. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 20X1 Record entry Clear entry View general journal Required 1 Required 2 What is the new balance of Madison Wells, Capital? New balance