All Revenue and Expense Accounts Have Been Closed at the End

question 67

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 $520,000 and total credits of $600,000. As of the same date, Dan Patton, Capital has a balance of $115,000, and Dan Patton, Drawing has a balance of $48,000.
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, 2010.

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Definitions:

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including costs of materials, labor, and overhead.