US: Tel: 1-206-279-3300
EU: Tel: +30 6986 007 252
Google+ Facebook Twitter LinkedIn

Capital = $50,000 Retained Earnings = $10,100 Total Equity = $60,100

The loan of $20,000 was not in the asset side? Cash includes it. The real issue: The trial balance above was inconsistent. Let’s rebuild correctly in a real exercise. 6. Exercise 5: Closing Entries Using the corrected Income Statement (Net Income = $10,100), close the temporary accounts.

Debit: 6,000 (Feb10) Balance = 6,000