Reference no: EM132480937

On December 31, the ledger of Davis Company contained the following account balances:

Accounts Payable $14,800                     Fees Income $188,000

Accounts Receivable 6,600                    Supplies 5,000

Accumulated Depreciation 9,600             Prepaid Rent 65,000

Cash 90,000                                       Rent Expense 9,800

Depreciation Expense 9,600                   Supplies Expense 9,000

Equipment 78,000                                Teresa Davis, Capital 133,800

Teresa Davis, Drawing 57,000                 Utilities Expense 16,200

All the accounts have normal balances. Prepare the closing entries for Davis Company On December 31.

Question 1: How do you enter these transactions to transfer fees income to income summary.

Question 2: How do you enter these transactions to transfer expenses to income summary.

Question 3: How do you enter these transactions to transfer net income or net loss from income summary to capital.

Question 4: How do you enter these transactions to transfer drawings to capital account.