After all revenue and expense accounts have been closed at the end of the fiscal year, Income Summary Darcy Lewis

After all revenue and expense accounts have been closed at the end of the fiscal year, Income Summary has a debit of $490,750 and a credit of $613,400. At the same date, Darcy Lewis, Capital has a credit balance of $833,600, and Darcy Lewis, Drawing has
a balance of $55,000. (a) Journalize the entries required to complete the closing of the accounts. (b) Determine the amount of Darcy Lewis, Capital at the end of the period.


Answer:

a.
 Income Summary 122,650
Darcy Lewis, Capital 122,650
($613,400 – $490,750).
Darcy Lewis, Capital 55,000
Darcy Lewis, Drawing 55,000
b. $901,250 ($833,600 + $122,650 – $55,000)