Question 5. At june 30 , account balances after adjustments for Alpha Cinema are
ID: 2402237 • Letter: Q
Question
Question 5.
At june 30 , account balances after adjustments for Alpha Cinema are as follows:
Accounts. Accounts Balances
Cash. $31,000
supplies. 4,000
Equipment. 50,000
Accumulated Depreciation- Equipment 13,000
Accounts payable. 10,000
Owner's Capital. 20,000
Owner's Drawings. 10,000
sales Revenue. 105,000
service Revenue. 53,000
Advertising Expense. 25,000
supplies expense. 19,000
Depreciation Expense. 5,000
Rent Expense. 25, 000
salaries and wages Expense. 27,000
Utilities Expense. 5,000
Instructions
In doing the closing journal entries for Alpha cinema for the year ended june 30. What will be the
1. Balance in income summary to be transferred to Owner's Capital
2. Balance in Owner's Capital (after the transfer from income summary and drawings.
Explanation / Answer
1) Balance in income summary to be transferred to owner's equity
Balance in icome summary to be transferred to owner's capital is $52000
2) Balance in owner's capital = 20000+52000-10000 = $62000
Sales revenue 105000 Service revenue 53000 Advertising expense -25000 supplies expense. -19000 Depreciation expense -5000 Rent expense -25000 salaries and wages Expense. -27000 Utilities expense -5000 Net 52000Related Questions
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