All Revenue and Expense Accounts Have Been Closed at the End

question 105

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 $530,000 and total credits of $600,000. As of the same date, Owner's Capital has a balance of $115,000, and Owner's Drawings 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, 2022.

---

Definitions:

Collection

A group of objects or works to be seen, studied, or kept together.

Aspect Ratio

The proportional relationship between the width and height of an image or screen.

Widescreen

A term describing a display aspect ratio wider than the traditional 4:3, commonly used in televisions and computer monitors.

Standard

Commonly accepted or established criteria or benchmarks used as a reference point for comparison or compliance.