Closing entries with net income Assume that the entry closing total revenues of $3,190,000 and total expenses of $2,350,000 has been made for the year. At the end of the fiscal year, Teresa Schafer, Capital has a credit balance of $1,885,000 and Teresa Schafer, Drawing has a balance of $770,000. (a). Journalize the entry required to close the Teresa Schafer, Drawing account. (b). Determine the amount of Teresa Schafer, Capital at the end of the period.

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter4: Income Measurement And Accrual Accounting
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Problem 4.28E
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Closing entries with net income

Assume that the entry closing total revenues of $3,190,000 and total expenses of $2,350,000 has been made for the year. At the end of the fiscal year, Teresa Schafer, Capital has a credit balance of $1,885,000 and Teresa Schafer, Drawing has a balance of $770,000.

(a). Journalize the entry required to close the Teresa Schafer, Drawing account.

(b). Determine the amount of Teresa Schafer, Capital at the end of the period.

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