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Income Statement and Balance Sheet

The summary amounts below appear in the Income Statement and Balance Sheet columns of a company's December 31 work sheet. Prepare the necessary closing entries.

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Problem #1
The summary amounts below appear in the Income Statement and Balance Sheet columns of a company's December 31 work sheet. Prepare the necessary closing entries.

Dec. 31 Revenue 19,500
Income Summary 19,500

Dec. 31 Income Summary 16,500
Salaries expense 11,250
Other operating expenses 5,250

Dec. 31 Income Summary 3,000
Kate Smith, Capital 3,000

Dec. 31 Kate Smith, Capital 1,500
Kate Smith, Withdrawals 1,500
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Solution Summary

This solution is comprised of a detailed explanation to prepare the necessary closing entries.

$2.19