Question

Prior to adjustment at August 31, Salary Expense has a debit balance of $258,270. Salaries owed but not paid as of the same date total $3,760.

Prepare the entries to record the following:

1. Accrued salaries as of August 31.

2. Closing of Salary Expense as of August 31.

Hannah Roberts owns and operates Hannah's Pool Service Company. On January 1, Hannah Roberts, Capital had a balance of $303,110. During the year Hannah invested an additional $20,810 and withdrew $39,530. For the year ended December 31 Hannah's Pool Service Company reported a net income of $58,430.

Prepare a statement of owner’s equity for the year ended December 31.

Hannah's Pool Service Company
Statement of Owner’s Equity
For the Year Ended December 31
$
$
Total
$

Answer 1

Answer: Please see below for answer

Step-by-step explanation:

Entry for accrued salaries

Date August, 31

ACCOUNT TITLE DEBIT CREDIT

Salary expense $ 3,760

Salaries payable $3,760

Entry for Closing salary Expense

Date: August, 31

ACCOUNT TITLE DEBIT CREDIT

Income summary (258,370+3,760) $262,030

Salaries expense $262,030

Hannah's Pool Service Company Statement of Owner’s Equity For the Year Ended December 31

Hannah Roberts Capital Jan, 1st $303,110

Investmnent during the year $20,810

Net income (add) $58,430

Withdrawals during year(subtract)$39,530

Owners equity $39,710

Capital for December 31st $342,820

*Capital for December 31st is capital on January 1st plus owners equity.