Question

The Income Summary and Karen Randall, Capital accounts for Randall Printing Company at the end of its accounting period follow. ACCOUNT: Income Summary ACCOUNT NO. 399 Balance Date Description Debit Credit Debit Credit Dec. 31 Closing 52,500 52,500 31 Closing 32,700 19,800 31 Closing 19,800 0 ACCOUNT: Karen Randall, Capital ACCOUNT NO. 301 Balance Date Description Debit Credit Debit Credit Dec. 1 162,000 31 Closing 19,800 181,800 31 Closing 8,400 173,400 What is the total revenue for the period? What is the total expenses for the period? What is the net income (loss) for the period? What is the owner’s withdrawals for the period?

Answer 1

Answer:

Total revenues are represented by the credit figure in the income summary i.e. $52,500

Total expenses are represented by the debit figure in the income summary i.e. $32,700

Net income is the difference between revenues and expenses i.e 52,500 - 32,700 = $19,800

Owner's withdrawals are represented by the debit figure in the Karen Randell's capital account i.e. $8,400