Question
The adjusted account balances of MacDonald Company, at December 31, 2021, are as follows: Cash$12,700Accounts payable$12,000Accounts receivable22,000Notes payable7,000Prepaid insurance10,000Accumulated depreciation-Equipment40,000equipment14,000Depreciation expense7,000Service revenue27,000B. Stine, drawings1,500B.MacDonald, capital22,000Advertising
The adjusted account balances of MacDonald Company, at December 31, 2021, are as follows:
Cash$12,700Accounts payable$12,000Accounts receivable22,000Notes payable7,000Prepaid insurance10,000Accumulated depreciation-Equipment40,000equipment14,000Depreciation expense7,000Service revenue27,000B. Stine, drawings1,500B.MacDonald, capital22,000Advertising expense400Unearned service revenue16,000Rent expense1,800Salary expense2,000Insurance expense600______$98,000$98,000
Instructions
a)Prepare closing entries for December 31, 2021.b)Determine the balance in B. MacDonald's capital account after the entries have been posted.
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Financial Accounting
Authors: David Spiceland, Wayne M. Thomas, Don Herrmann
5th edition
1259914895, 978-1259914898
