Answer:
To determine the ending capital balance after closing the income summary and owner's drawing accounts, we need to consider the nature of these accounts and their impacts on the owner's capital.
1. Income Summary account: The income summary account is used to summarize the revenue and expense accounts at the end of an accounting period. Since it has a credit balance of $2,115.00, it indicates that the revenues exceeded the expenses.
To close the income summary account, we transfer its credit balance to the owner's capital account. This means we will add $2,115.00 to the owner's capital.
2. Owner's Drawing account: The owner's drawing account is used to record withdrawals made by the owner for personal purposes. It has a debit balance of $5,121.00, indicating that the owner has withdrawn $5,121.00 during the accounting period.
To close the owner's drawing account, we need to subtract its debit balance from the owner's capital. This means we will deduct $5,121.00 from the owner's capital.
Given the starting balance of the owner's capital account as $13,326.00, let's calculate the ending capital balance:
Starting Owner's Capital: $13,326.00
Add: Income Summary Balance ($2,115.00)
Subtract: Owner's Drawing Balance ($5,121.00)
Ending Capital Balance = Starting Owner's Capital + Income Summary Balance - Owner's Drawing Balance
Ending Capital Balance = $13,326.00 + $2,115.00 - $5,121.00
Calculating the above equation:
Ending Capital Balance = $10,320.00
Therefore, the ending capital balance after closing the income summary and owner's drawing accounts would be $10,320.00.