The completed adjusted trial balance for Bray Company is below.

Instructions

a. Prepare an income statement, a statement of owner?s equity, and a classifi ed balance sheet. L. Bray did not make any additional investments during the year.

b. Prepare the closing entries.

c. Post the closing entries and calculate the balance in each account. (Use T accounts.) Income Summary is account No. 350.

d. Prepare a post-closing trial balance.

L. Bray has been told that, after the closing entries have been posted, he should stop and check his work. Explain to L. Bray what he should be checking for.

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BRAY COMPANY Adjusted Trial Balance December 31, 2021 Account No. Account Titles Dr. Cr. 101 Cash $ 8,800 112 Accounts receivable 10,800 Prepaid insurance Equipment Accumulated depreciation–equipment Accounts payable Salarles payable L. Bray, capital L. Bray, drawings 130 2,800 157 24,000 158 $ 4,200 201 9,000 212 2,400 301 19,500 306 11,000 400 Service revenue 60,000 622 1,700 Repairs expense Depreciation expense Insurance expense Salaries expense Utilities expense 711 2,800 722 1,800 726 30,000 732 1,400 $95,100 Totals $95,100