At April 1 2016 Spiderland Company reported a balance of $20000 in the Owner's Capital account. Spiderland Company earned revenues of $50000 and incurred expenses of $32000 during April 2016. The company had owner drawings of $10000 during the month.
(a) Prepare the entries to close Income Summary and the Owner's Drawings acccount at April 30 2016.
(b) What is the balance in Owner's Capital on the April 30 2016 post-closing trial balance?

Question

Quizplus · Accepted Answer

The Answer of At April 1 2016 Spiderland Company reported a balance of $20000 in the Owner's Capital account. Spiderland Company earned revenues of $50000 and incurred expenses of $32000 during April 2016. The company had owner drawings of $10000 during the month.
(a) Prepare the entries to close Income Summary and the Owner's Drawings acccount at April 30 2016.
(b) What is the balance in Owner's Capital on the April 30 2016 post-closing trial balance?

At April 1 2016 Spiderland Company Reported a Balance of $20000