Reference no: EM132619066

The adjusted account balances of MacDonald Company, at December 31, 2021, are as follows:

Cash $12,700

Accounts payable $12,000

Accounts receivable 22,000

Notes payable 7,000

Prepaid insurance 10,000

Accumulated depreciation- Equipment 40,000 equipment14,000

Depreciation expense 7,000

Service revenue 27,000

B. Stine, drawings 1,500

B.MacDonald, capital 22,000

Advertising expense 400

Unearned service revenue 16,000

Rent expense 1,800

Salary expense 2,000

Insurance expense 600______

$98,000$98,000

Instructions

Problem a) Prepare closing entries for December 31, 2021.

Problem b) Determine the balance in B. MacDonald's capital account after the entries have been posted.