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The adjusted account balances of MacDonald Company, at December 31, 2021, are as follows: Cash $12,700 Accounts payable $12,000 Accounts receivable 22,000 Notes payable 7,000
The adjusted account balances of MacDonald Company, at December 31, 2021, are as follows:
| Cash | $12,700 | Accounts payable | $12,000 |
| Accounts receivable | 22,000 | Notes payable | 7,000 |
| Prepaid insurance | 10,000 | Accumulated depreciation |
| Equipment | 40,000 | equipment | 14,000 |
| Depreciation expense | 7,000 | Service revenue | 27,000 |
| B. Stine, drawings | 1,500 | B.MacDonald, capital | 22,000 |
| Advertising expense | 400 | Unearned service revenue | 16,000 |
| Rent expense | 1,800 |
| Salary expense | 2,000 |
| Insurance expense | 600 | ______ |
| $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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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
