Can someone please help with this?
Demetria Davis, the bookkeeper for Home Interiors and Designs Company, has just finished posting the closing entries for the year to the ledger. She i
Demetria Davis, the bookkeeper for Home Interiors and Designs Company, has just finished posting the closing entries for the year to the ledger. She is concerned about the following balances:
Capital account balance in the general ledger:$97,100
Ending capital balance on the statement of owner’s equity: 55,600
Davis knows that these amounts should agree and asks for your assistance in reviewing her work.
Your review of the general ledger of Home Interiors and Designs Company reveals a beginning capital balance of $50,000. You also review the general journal for the accounting period and find the closing entries shown below.
GENERAL JOURNAL
DateDescriptionDebitCredit
2016 Closing Entries
Dec. 31 Fees Income98,000
Accumulated Depreciation8,500
Account Payable33,000
Income Summary 139,500
31 Income Summary92,400
Salaries Expense 78,000
Supplies Expense 5,000
Depreciation Expense 2,400
Thomas Richey, Drawing 7,000
2.
Prepare a general journal entry to correct the errors made.
or:Demetria Davis, the bookkeeper for Home Interiors and Designs Company, has just finished posting the closing entries for the year to the ledger. She is concerned about the following balances: \t \t Capital account balance in the general ledger:\t$\t97,100 Ending capital balance on the statement of owner\u2019s equity:\t \t55,600 Davis knows that these amounts should agree and asks for your assistance in reviewing her work. Your review of the general ledger of Home Interiors and Designs Company reveals a beginning capital balance of $50,000. You also review the general journal for the accounting period and find the closing entries shown below. GENERAL JOURNALDate\tDescription\tDebit\tCredit2016\t \tClosing Entries\t \t Dec. \t31\t Fees Income\t98,000 \t \t \t Accumulated Depreciation\t8,500 \t \t \t Account Payable\t33,000 \t \t \t Income Summary\t \t139,500 \t \t \t \t \t31\t Income Summary\t92,400 \t \t \t Salaries Expense\t \t78,000 \t \t Supplies Expense\t \t5,000 \t \t Depreciation Expense\t \t2,400 \t \t Thomas Richey, Drawing\t \t7,000 2.\tPrepare a general journal entry to correct the errors made.
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