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Question :
On December 31, the Income Summary account of Madison Company has a debit balance of $111,000 after revenue of $117,000 and expenses of $228,000 were closed to the account. Madison Wells, Drawing has a debit balance of $12,000 and Madison Wells, Capital has a credit balance of $174,000;
Required:
1. Record thejournal entries necessary to complete closing the accounts.
2. What is the new balance of Madison Wells, Capital?
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