On December 31, the Income Summary account of Madison Company has a debit balance of $25,000 after revenue of $27,000 and expenses of $52,000 were closed to the account. Madison Wells, Drawing has a debit balance of $2,800 and Madison Wells, Capital has a credit balance of $46,000. Required:

1. Record the journal entries necessary to complete closing the accounts.
2. What is the new balance of Madison Wells, Capital?

Record the journal entries necessary to complete closing the accounts.

Record the closing entry for the drawing account