Prepare closing entries (Learning Objective 4) 10–15 min.

The adjusted trial balance shown below is for Brava Company at the end of its fiscal year.

Requirement 1. Prepare the closing entries for the temporary accounts on June 30.

2. What is Brava’s ending Retained Earning balance on June 30, 2014?AppendixLO1

Transcribed Image Text:

Brava Company Adjusted Trial Balance June 30, 2014 ACCOUNT Cash Accounts Receivable Supplies Prepaid Insurance DEBIT CREDIT $ 15,000 8,200 800 2,700 Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable 16,400 $ 4,500 5,500 1,900 Unearned Rent Revenue 800 Common Stock 18,000 Retained Earnings 6,000 Dividends 5,900 Service Revenue 35,000 Rent Revenue 14,100 Salaries and Wages Expense 19,500 Supplies Expense 1,500 Rent Expense 12,500 Insurance Expense 1,800 Depreciation Expense Total 1,500 $85,800 $85,800