Reference no: EM132404004

Question

At June 30, account balances after adjustments for Alpha Cinema are as follows:

Accounts Account Balances

Cash $31,000

Supplies 4,000

Equipment 50,000

Accumulated Depreciation-Equipment 13,000

Accounts Payable 10,000

Owner's, Capital 20,000

Owner's, Drawings 10,000

Sales Revenue 105,000

Service Revenue 53,000

Advertising Expense 25,000

Supplies Expense 19,000

Depreciation Expense 5,000

Rent Expense 25,000

Salaries and Wages Expense 27,000

Utilities Expense 5,000

Instructions

In doing the closing journal entries for Alpha Cinema for the year ended June 30. What would be the:

1.Balance in Income Summary to be transferred to Owner's Capital

2. Balance in Owner's Capital (after the transfer from Income Summary and Drawings)