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I am confused what closing entry I need to add in the red boxes of income summary. I have closed out the expenses and revenues,
I am confused what closing entry I need to add in the red boxes of income summary. I have closed out the expenses and revenues, and the $6423 value is my net income value. I thought you only credited revenues in the income summary which is why I'm very confused on what I am missing. There were no dividends but there was a withdrawal from the business for $3880, but that doesn't get recorded in the income summary I thought. If you could help me out on this problem I would greatly appreciate it!
Problem 3-1 Listed below are the transactions of Newman Kavabata, D.D.Sr for the month of September. Sept. 1 Kawabata begins practice as a dentist and invests $21,620 cash 2 Purchases dental equipment on account from Green Jacket Co. for $18,840. 4 Pays rent for office space, $712 for the month. 4 Employs a receptionist, Michael Bradley. 5 Purchases dental supplies for cash, $1,017. 8 Receives cash of $1710 from patients for services performed. 10 pays miscellaneous office expenses, $520. 14 Bills patients $6,150 for services performed. 18 Pays Green Jacket Co. on account, $5,560. 19 Withdraws $3,880 cash from the business for personal use. 20 Receives $1,050 from patients on account. 25 Bills patients $2,850 for services performed. 30 Pays the following expenses in cash: Salaries and wages $2,240: miscellaneous office expenses $91. (Record each separately.) 30 Dental supplies used during September, $410. Record depreciation using a 5-year life on the equipment, the straight-line method, and no salvage valueStep by Step Solution
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