Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Carry out an interview and review its success.

Answered: 1 week ago