Capri Company began the current period with a $20,000 credit balance in the K. Capri, Capital account. At the end of the period, the company’s adjusted account balances include the following temporary accounts with normal balances. Service fees earned . $70,000 Interest revenue $ 7,000 Salaries expense 38,000 K. Capri, Withdrawals . 12,000 Depreciation expense . 8,000 Utilities expense . 4,600 1. After closing the revenue and expense accounts, what is the balance of the Income Summary account? 2. After all closing entries are journalized and posted, what is the balance of the K. Capri, Capital account?

Question

Capri Company began the current period with a $20,000 credit balance in the K. Capri, Capital account.
At the end of the period, the company’s adjusted account balances include the following temporary accounts
with normal balances. Service fees earned . $70,000 Interest revenue $ 7,000
Salaries expense 38,000 K. Capri, Withdrawals . 12,000
Depreciation expense . 8,000 Utilities expense . 4,600 1. After closing the revenue and expense accounts, what is the balance of the Income Summary account?
2. After all closing entries are journalized and posted, what is the balance of the K. Capri, Capital account?

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