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:

Fahrenheit

A temperature scale on which water freezes at 32 degrees and boils at 212 degrees under standard conditions.

Freezing

The process of turning a liquid into a solid by lowering its temperature below its freezing point.

Fahrenheit

A temperature scale in which water freezes at 32 degrees and boils at 212 degrees under standard atmospheric pressure, commonly used in the United States.

Active Lifestyle

A way of life that integrates physical activity into daily routines, aiming to improve health and wellbeing.