All Revenue and Expense Accounts Have Been Closed at the End

question 153

Essay

All revenue and expense accounts have been closed at the end of the calendar year for Patton Company. The Income Summary account has total debits of $530000 and total credits of $600000. As of the same date Owner's Capital has a balance of $115000 and Owner's Drawings has a balance of $48000.
Instructions
(a) Journalize the entries required to complete the closing of the accounts.
(b) Prepare an owner's equity statement for the year ended December 31 2016.

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Definitions:

Night Terrors

Intense episodes of fear that occur during sleep, typically in children, characterized by screaming, sweating, and confusion but little or no recall of the event upon awakening.

Nightmares

Disturbing dreams that can cause feelings of fear, terror, or anxiety, often awakening the sleeper.

Nicotine

The active ingredient in tobacco.

Stimulant

A substance that raises levels of physiological or nervous activity in the body, often used to increase alertness, attention, and energy.