In trying to prepare the post closing trial balance I need to make a journal entry to the owners capital to increase it by 12,670 the net income... Im lost as to what account to debit :(:confused:

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Originally Posted by cagemini03

in trying to prepare the post closing trial balance i need to make a journal entry to the owners capital to increase it by 12,670 the net income.....Im lost as to what account to debit :(:confused:

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I'm assuming what you mean is that you have net income of 12,670 and want to make the proper closing entries so that owners' equity will increase by 12,670.

Here's what you need to do.

You need to create a separate account "Income Summary" and close your revenue and expense to it by debiting and crediting the Income Summary account respectively.

Then, you need to close the Income Summary account by either crediting or debiting the Retained Earnings account (in your case crediting Retained Earnings)

A-1 photography general journal

Quote:

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Originally Posted by cagemini03

in trying to prepare the post closing trial balance i need to make a journal entry to the owners capital to increase it by 12,670 the net income.....Im lost as to what account to debit :(:confused:

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Capital reserve a/c Dr
To net profit a/c

Quote:

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Originally Posted by cagemini03

in trying to prepare the post closing trial balance i need to make a journal entry to the owners capital to increase it by 12,670 the net income.....Im lost as to what account to debit :(:confused:

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Capital reserve a/c Dr
To Net profit a/c

I need a answer for A-1 photography general journal entries

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Originally Posted by nusrat uddin

i need a answer for A-1 photography general journal entries

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First, you need to start your own thread. No one is looking for A-1 photography under a thread about closing entries.

Second, you're going to have to get a lot more specific. No one is going to know what journal entries you are referring to.

(And just as a note, you'll have to find someone else who is doing this project for school. I personally have no idea what it is, although I see people posting about it.)