Answer:
Alberto's Plumbing Services
Net income for the period is:
b. $13,975
Explanation:
a) Data and Calculations:
Alberto, Capital
12/31 Clos. 7,958 1/1 Bal. 5,058
12/31 Clos. 13,975
Alberto, Drawing
6/30 2,835 12/31 Clos. 7,958
11/30 5,123
b) The net income is closed to the Capital account on December 31. The closing entry is debited to the Income Summary and correspondingly credited to the Capital account. So, the $13,975 credited on the capital account is the net income for the year. Similarly, the drawings account is closed to the Capital account by a debit to the Capital account and a corresponding credit to the Drawing account.
