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.

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Definitions:

Incorrect Tense

The use of a verb form that is not appropriate for the time frame or sequence of events discussed, leading to grammatical errors.

Suffering

The state of undergoing pain, distress, or hardship, which can be physical, emotional, or psychological.

Complained

To express dissatisfaction, discomfort, or annoyance about something.

Cycle

A sequence of events that repeat in a regular pattern.