Posted by Colleen on Thursday, February 23, 2012 at 9:22am.
Wilson Reed, the bookkeeper for Home Interior Improvements and Designs Company, has just finished posting the closing entries for the year to the ledger. He is concerned about the following balances:
Capital account balance in the general ledger: $ 48,550
Ending capital balance on the statement of owner’s equity: 27,800
Wilson knows that these amounts should agree and asks for your assistance in reviewing his work.
Your review of the general ledger of Home Interior Improvements and Designs Company reveals a beginning capital balance of $25,000. You also review the general journal for the accounting period and find the closing entries shown below.
DATE DESCRIPTION DEBIT CREDIT
2013 Closing Entries
Dec. 31 Fees Income 49,000
Accumulated Depreciation 4,250
Account Payable 16,500
Income Summary 69,750
31 Income Summary 46,200
Salaries Expense 39,000
Supplies Expense 2,500
Depreciation Expense 1,200
James Walker, Drawing 3,500
Prepare a general journal entry to correct the errors made.
Reconcile the balance of capital account in the ledger after closing entries have been posted and the ending capital balance of owner's equity.
Answer this Question
accounting - Your review of the general ledger of Home Interior Improvements and...
history - how did Woodrow Wilson's reform platform during the 1912 campaign ...
accounting - What entries would the bookkeeper have made ie the cheque is not ...
history - i really need help on this, i've been trying to answer it for so long...
tax - Can someone please check my answer for the following problem. The Smiths ...
accounting - is it ethical for a bookkeeper to take it upon herself to set aside...
MATH - In order to make some home improvements, a home owner spent $24,000. He ...
APUSH - Please help! What event made the ratification of the Treaty of ...
intermediate 111 - Wilson Corporation began operations in January 2008, and ...
accounting - You have been asked to speak at a career fair for high school ...