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Kimberly Ashley, the bookkeeper for Interiors Designs, has just finished posting the closing entries for the year to the ledger. She is concerned about
Kimberly Ashley, the bookkeeper for Interiors Designs, has just finished posting the closing entries for the year to the ledger. She is concerned about the following balances: Capital account balance in the general ledger: Ending capital balance on the statement of owner's equity: $194,200 111,200 Ashley knows that these amounts should agree and asks for your assistance in reviewing her work. Your review of the general ledger of Interiors Designs reveals a beginning capital balance of $100,000. You also review the general journal for the accounting period and find the closing entries shown below. GENERAL JOURNAL Description Date Debit Page 15 Credit 20x1 Closing Entries Dec. 31 Fees income 196,000 Accumulated depreciation 17,000 Account payable 66,000 Incone summary 279,000 31 Income summary 184,800 Salaries expense 156,00 Supplies expense 10,000 Depreciation expense 4,800 Wade Wilson, Drawing 14,000 Required: 2. Prepare a general journal entry to correct the errors made. 3. Reconcile the balance of capital account in the ledger after closing entries have been posted and the ending capital balance of owner's equity. Complete this question by entering your answers in the tabs below. Required 2 Required 3 Prepare a general journal entry to correct the errors made.
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