Closing entries with net income
After all revenue and expense accounts have been closed at the end of the fiscal year, Income Summary has a debit of $315,000 and a credit of $449,500. At the same date, Faye Barnes, Capital has a credit balance of $750,000, and Faye Barnes, Drawing has a balance of $40,000.
(a) Journalize the entries required to complete the closing of the accounts.
(b) Determine the amount of Faye Barnes, Capital at the end of the period.