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Closing Entries and Owner's Equity Balance

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On December 31, 2008. Kings Bait and Tackle had the following ending account balances after all adjusting entries were completed.
Cash $35,000
Inventory 29,000
Supplies 8,500
Prepaid rent 7,000
Equipment 83,900
Accumulated Depreciation ($17,400)
Accounts payable 41,220
Wages payable 10,5000
Owners' equity 50,000
Sales revenue 99,000
Cost od goods sold 21,000
Wages expense 15,000
Utilities expense 1,020
Depreciation expense 3,200
Insureance expense 1,000
Supplies expense 1,500
rent expense 12,000

A. Please post both closing entries that will be done at the end of the year.
B. What is the ending owners' equity balance?

Please use the following format when recording your closing entries:
Debit account name
Credit account name

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Solution Summary

This solution provides the correct journal entries and owners' equity balance for the exercise given.

Solution Preview

A -- The 1st closing entry will be made to close sales revenue and bring it to a zero balance.

Sales 99,000
Income summary 99,000 (the sales acct. is always closed to ...

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