Question

On December 31 the Income Summary account of Cook Company has a debit balance of $18,000 after revenue of $49,000 and expenses of $67,000 were closed to the account. Maria Cook, Drawing has a debit balance of $23,000 and Maria Cook, Capital has a credit balance of $84,000. Record the journal entries necessary to complete closing the accounts. Post the closing entries to the Maria Cook, Capital account.

Answer 1

Answer: The answer is given below

Explanation:

The journal gives a detailed account of the financial activities that has taken place in an organization or a business.

The journal entries necessary to complete closing the above accounts has been recorded and attached. It should also be noted that the capital balance will be:

= $84000 - $18000 - $23000

= $43000

Check the attached file for further analysis.