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.