Question

Closing Entries with Net Income

After all revenue and expense accounts have been closed at theend of the Fiscal year, Income summary has a debit of 490,750 and acredit of 613,400. At the same date , Mr. Lewis Capital has acredit balance of 833,600 , and Mr. Lewis , Drawing has a balanceof 55,000.

A. Journalize the entries required to (1) close net income ornet loss and (2) close the drawing sccount

  1._____________         __________________

    ______________                                                         _________________.

2.______________         __________________

   ______________                                                          __________________

B. Determine the amount of Mr. Lewis, Capital at the end of theperiod _______________ .