Applying the Entire Accounting Cycle

The post-closing trial balance for Wilson Corp., a retailer, at December 31, 2019, follows.

Acc. No.	Description	Debit	Credit
101	Cash	27,000	0
102	Accounts receivable	21,000
103	Allowance for doubtful accounts		1,000
104	Inventory (perpetual inventory system)	35,000
105	Prepaid insurance (20 months remaining)	900
200	Equipment (20-year estimated life, no residual value)	50,000
201	Accumulated depreciationequipment		22,500
300	Accounts payable		7,500
301	Salaries payable
302	Income taxes payable (for 2019)		4,000
400	Common stock, par $1		80,000
401	Retained earnings		18,900
500	Sales
600	Cost of goods sold
601	Operating expenses
602	Income tax expense
700	Income summary
	Total	$133,900	$133,900

The following transactions occurred during 2020 in the order shown (use the number at the left in place of a date). 1. Sales revenue was $30,000, of which $10,000 was on credit; the cost, provided using perpetual inventory, was $19,500. 2. Collected $17,000 cash on accounts receivable. 3. Paid $4,000 cash toward income taxes payable (2019). 4. Purchased $40,000 of merchandise, of which $8,000 was on credit. 5. Paid $6,000 cash toward accounts payable. 6. Sales revenue was $72,000 (in cash); cost was $46,800. 7. Paid $19,000 cash in operating expenses. 8. On July 1, 2020, issued 1,000 shares of common stock, par $1, for $1,000 cash. 9. Purchased $100,000 of merchandise, of which $27,000 was on credit. 10. Sales revenue was $98,000, of which $30,000 was on credit; cost, $63,700. 11. Collected $26,000 cash toward accounts receivable. 12. Paid $28,000 cash toward accounts payable. 13. Paid $18,000 cash for various operating expenses.

Journal Entries T-Accounts Unadjusted Trial Balance Adjusting Journal Entries T-Accounts after Adjusting Journal Entries Adjusted Trial Balance Financial Statements Closing Journal Entries T-Accounts After Closing Journal Entries Post-Closing Trial Balance 102 104 105 200 i. Post the closing entries to the ledger. Cash 101 0 0 0 0 Accounts Receivable 0 0 0 0 Inventory 0 Prepaid Insurance 0 Equipment 0 103 0 0 Allowance for Doubtful Accounts 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 300 Accounts Payable 0 0 0 0 Accumulated Depreciation- Equipment 0 201 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 301 Common Stock 302 400 Retained Earnings 401 Sales Salaries Payable 0 500 600 Income Taxes Payable 0 0 Cost of Goods Sold 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 601 602 Income Summary 700 Operating Expense 0 Income Tax Expense 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0