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: $196,700 112,950 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. Page 15 Credit Debit Date 20x1 Dec. 31 GENERAL JOURNAL Description Closing Entries Fees income Accumulated depreciation Account payable Income summary 197,750 17,250 66,500 281,500 31 184,800 Income summary Salaries expense Supplies expense Depreciation expense Wade Wilson, Drawing 156,750 10,000 4,800 13,250 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. View transaction list Journal entry worksheet 1 Record the entry to correct errors made in closing entries. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31. 20X1 Pecordant Clearanto Viliul 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: $196,700 112,950 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. Debit Page 15 Credit Date 20x1 Dec. 31 GENERAL JOURNAL Description Closing Entries Fees income Accumulated depreciation Account payable Income summary 197,750 17,250 66,500 281,500 31 184,800 Income summary Salaries expense Supplies expense Depreciation expense Wade Wilson, Drawing 156,750 10,000 4,800 13,250 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 Reconcile the balance of capital account in the ledger after closing entries have been posted and the ending capital balance of owner's equity. Fees income 197,750 Expenses Salaries expense Supplies expense Depreciation expense $ 156,750 10,000 4,800 171,550 $ 26,200 $ 26,200 $ 26,200 Capital account balance in general ledger Less: Debit from correcting entry Corrected ending Capital balance $ 0
