Question

Presented below is an adjusted trial balance for Neveen Company, at December 31, 2019. Account Title Debit Credit Cash 14.000 Accounts receivable 20,000 Prepaid insurance 15.000 Equipment 40,000 Accumulated Depreciation- Equipment 15.000 Accounts payable 6000 Uneamed revenue 20,000 Notes payable 9,000 Omar, Capital 30.000 Omar, Drawing 1,200 Service revenue 20.000 Depreciation expense 5000 Advertising expense 1000 Rent expense 700 Salary expense 1,600 Insurance expense 1,500 L.E. 100,000 L.E.100,000 Instructions: (a) Prepare closing entries for December 31, 2019. (b) Determine the balance in neveen's capital account after the entries have been posted. (c) prepare a balance sheet after closing.

Please Make the Answer thanks in advance

Answer 1

Journal

Date	Account Title and Explanation	Debit	Credit
Dec 31, 2019	Service revenue	20,000
	Income summary		20,000
	(To close revenue)
Dec 31, 2019	Income summary	9,800
	Depreciation expense		5,000
	Advertising expense		1,000
	rent expense		700
	Salary expense		1,600
	Insurance expense		1,500
	(To close expenses)
Dec 31, 2019	Income summary	10,200
	capital, Omar		10,200
	(To close income summary)
Dec 31, 2019	capital, Omar	1,200
	Drawings, Omar		1,200
	(To close drawings)

Income statement

Service revenue		20,000
Expenses :
Depreciation expense	5,000
Advertising expense	1,000
rent expense	700
salary expense	1,600
Insurance expense	1,500
Total expenses		-9,800
Net income		10,200

b.

Omar's Capital Account

Beginning capital		30,000
Net income	10,200
Less : Drawings	-1,200	9,000
Ending capital		39,000

c.

balance sheet

As at December 31, 2019

Assets	Liabilities and owner's equity
Cash	14,000	Accounts payable	6,000
Accounts receivable	20,000	Unearned revenue	20,000
Prepaid insurance	15,000	Note payable	9,000
Equipment                                 40,000		Omar's capital	39,000
Less: Accmulated depreciation   -15,000	25,000
Total assets	74,000		74,000