Presented below is an adjusted trial balance for Siddiq Company, at December 31, 2020.

Cash $ 7,700 Accounts payable $10,000

Accounts receivable 20,000 Notes payable 9,000

Prepaid insurance 15,000 Accumulated depreciation

Equipment 35,000 Equipment 14,000

Depreciation expense 7,000 Service revenue 29,000

Owners Drawings 1,500 Owners capital 24,000

Advertising expense 1,400 Unearned service revenue 16,000

Rent expense 800

Salaries and wages expense 12,000

Insurance expense 1,600

$102,000 $102,000

Required:

(a) Prepare closing entries for December 31, 2020.

(b) Determine the balance in the Owners Capital account after the entries have been posted.