income statement balance sheet and statement of owners equit

income statement, balance sheet and statement of owner\'s equity for Magic Company as of December 31, 2017. The company also prepared closing entries for the period. Review the worksheet and closing entries below Dr 13.000 97.000 17.000 10 12000 75.000 Closing entries: Dec:31 Fees Earned 79,000 Income Summary Closo revonue occount 31

Solution

Answer for question no.2:

Income is transferred to income summary account, but expense accounts are not transferred, entry to transfer expenses to income summary accounts is as follows:

Income summary a/c Dr $64,000

To Salaries expense a/c Cr $56,000

To office supplies a/c Cr $8,000

(Being expenses transferred to income summary a/c)

Answer for question no.3:

Missing section in the work sheet are balance sheet and owners equity statement.

Owner\'s equity section is as follows:

Balance sheet as on XX/XX/XXXX is as follows:

Particulars	Amount	Amount
C. Trout, Capital		178500
Add: Net income for the year		15100
Total		193600
Minus: Drawings		30000
Balance in C. Trout, Capital account		163600