[dianajaime]

After all revenue and expense accounts have been closed at the end of the fiscal year, Income summary has a debit of $156,800 and a credit of $210,000. At the same date, capital has a credit balance of $243,000 and drawing has a balance of $20,400. What entries are necessary to complete the closing of income or loss and owner withdrawals? What is the capital at the end of the period?

[pready]

You have two closing entries left; one to close out income summary to Retained Earnings and one to close out Owners Withdrawals to Retained Earnings.

So for the first closing entry you will need to calculate the amount, which will be the difference between your debits and credits. Since your account has a debit balance you will Debit Income Summary and Credit Retained Earnings for the amount of the difference between your debits and credits in Income Summary account.

Your second closing entry is Debit Retained Earnings and Credit Owners Withdrawals for the amount in the account.