S&X Co. is a retail store owned by Paul Tuner. During the month of November, the equity accounts were affected by the following events:
Nov.9 Turner invested an additional $15,000 in the business.
Nov.15 Tuner withdrew $1,500 for his salary for the first two weeksof the month.
Nov.30 Turner withdrew $1,500 for his salary for the second twoweeks of the month.
Nov.30 S&X distributed $1,000 or earnings to Turner.
INSTRUCTIONS:
a. Assuming that the business is organized as a sole proprietor ship:
1. Prepare the journal entries to record the above events in the accounts of S&X.
2. Prepare the closing entries for the month of November. Assume that after closing all of the revenue and expense accounts, the Income Summary account has a balance of $5,000.
Hint: Record the investment in a separate capital account and the withdrawals (salary) in a separate drawing account. Close the drawing account into the capital account as part of the closing entries.
b. Assuming that the business is organized as a corporation.