At February 1, 2009, Dee Corp reported a balance of $19,000 in the Dee Capital account. Data...
Question:
At February 1, 2009, Dee Corp reported a balance of $19,000 in the Dee Capital account. Data Company earned revenues of $67,000 and incurred expenses of $38,000 during February 2009. The company had owner drawings of $10,000 during the month.
a) Prepare the entries to close the Income Summary and the Data, Drawing account at February 28, 2009.
b) What is the balance in Dee, Capital on the February 28, 2009, post-closing trial balance?
Drawing account:
A drawing account is not a standalone bank account. The account kept by a business person or accountant that details how much cash has been taken out by business owners is called drawing in accounts.
Answer and Explanation: 1
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View this answerTo close the income summary account, the net income for the year will be calculated which is as below:
Computation of net income:
| Particular | Amount |
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