Demetria Davis, the bookkeeper for Home Interiors and Designs Company, has just finished posting the closing entries for the year to the ledger. She is concerned about the following balances:


Capital account balance in the general ledger: $ 97,100
Ending capital balance on the statement of owner’s equity: 55,600


Davis knows that these amounts should agree and asks for your assistance in reviewing her work.
Your review of the general ledger of Home Interiors and Designs Company reveals a beginning capital balance of $50,000. You also review the general journal for the accounting period and find the closing entries shown below.

GENERAL JOURNAL
Date Description Debit Credit
2016 Closing Entries
Dec. 31 Fees Income 98,000
Accumulated Depreciation 8,500
Account Payable 33,000
Income Summary 139,500

31 Income Summary 92,400
Salaries Expense 78,000
Supplies Expense 5,000
Depreciation Expense 2,400
Thomas Richey, Drawing 7,000


2.
Prepare a general journal entry to correct the errors made.