A Balancing Act Piran, a student in accounting, comes to you, his teacher, with the following difficulty. After a great deal of time and effort, Piran has failed to balance the post-closing trial balance and has become quite frustrated. "Everything was going fine," he says. "My balance sheet balanced. My income statement agreed. I just can't figure it out." Piran's balance sheet, income statement, and post- closing trial balance are given below. CASE I Assets Bank Accounts Receivable Supplies Equipment Total Assets Liabilities Bank Loan Accounts Payable Total Liabilities Owner's Equity Beginning Balance Net Loss Drawings Decrease in Equity Ending Balance BALANCE SHEET Total Liabilities and Owner's Equity Revenue Expenses Advertising Delivery Rent Utilities Wages Net Loss $ 1301 7 406 385 19 462 $28554 $12.000 5726 $17726 $26 704 $ 876 15.000 15 876 10 828 $28 554 INCOME STATEMENT $31 462 $3.902 3764 12 000 672 12.000 32338 $ 876 POST-CLOSING TRIAL BALANCE Bank 1301 Account Receivable 7 406 Supplies 385 Equipment 19462 Bank Loan 12 000 Accounts Payable 5 726 Ending Capital 12 580 28 554 30 306