At April 1, 2022, Spiderland Company reported a balance of $20,000 in the Owner's Capital account. Spiderland Company earned revenues of $50,000 and incurred expenses of $32,000 during April 2022. The company had owner drawings of $10,000 during the month.
(a) Prepare the entries to close Income Summary and the Owner's Drawings account at April 30, 2022.
(b) What is the balance in Owner's Capital on the April 30, 2022, post-closing trial balance?

Question

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The Answer of At April 1, 2022, Spiderland Company reported a balance of $20,000 in the Owner's Capital account. Spiderland Company earned revenues of $50,000 and incurred expenses of $32,000 during April 2022. The company had owner drawings of $10,000 during the month.
(a) Prepare the entries to close Income Summary and the Owner's Drawings account at April 30, 2022.
(b) What is the balance in Owner's Capital on the April 30, 2022, post-closing trial balance?

At April 1, 2022, Spiderland Company Reported a Balance of $20,000