Homework: Week 3 Chapter 04 exercises Save Score: 0 of 1 pt 8 of 8 (0 complete)

Q: Homework: Week 3 Chapter 04 exercises Save Score: 0 of 1 pt 8 of 8 (0 complete)

Hill Capital:- Drawings 7000 Beginning Bal. 30000 Net Income 15500 Clos. Bal. 38500 45500 45500 Net Income = 41000 – 25500 = 15500 Drawings 7000 Beginning Bal. 30000 Net Income 15500 Clos. Bal. 38500 45500 45500

ID: 2393404 • Letter: H

Question

Homework: Week 3 Chapter 04 exercises Save Score: 0 of 1 pt 8 of 8 (0 complete) HW Score: 0%, 0 of 8 pts E4-22 (similar to) E Question Help Hill Insurance Agency started the year with a beginning capital balance of $30,000. During the year, Hill earned $41,000 of Service Revenue and incurred $25,500 of various expenses. Steve Hill withdrew $7,000 from the business. After the closing entries are recorded and posted, what ill be the balance of Hill, Capital? Post the beginning balance and closing entry amounts to the Capital account. Use a "Bal posting reference to show the beginning and ending balance of the Capital account. Use a "Clos."posting reference to show the amounts that are posted while closing the books. The revenue and expense amounts should be combined into one closing entry for net income (like you are closing the Income Summary account) Hill, Capital

Explanation / Answer

Hill Capital:-

Drawings

7000

Beginning Bal.

30000

Net Income

15500

Clos. Bal.

38500

45500

Net Income = 41000 – 25500 = 15500