Balance Sheet

Assets

Current Assets:

Cash $$80,000\mathrm{.}00$

Accounts receivable $$12,000\mathrm{.}00$

Prepaid insurance $$2,000\mathrm{.}00$

Supplies $$400\mathrm{.}00$

Total Current Assets $$94,400\mathrm{.}00$

Plant Assets:

Equipment $$4,000\mathrm{.}00$

Accumulated Depreciation $-$ equipment $$(100\mathrm{.}00)$

Total plan asset $$3,900\mathrm{.}00$

Total Assets $$98,300\mathrm{.}00$

Liabilities and Stockholders Equity

Current Liabilities:

Account payable $$800\mathrm{.}00$

Wages payable $$200\mathrm{.}00$

Unearned revenue $$1,200\mathrm{.}00$

Total Current Liabilities $$2,200\mathrm{.}00$

Stockholders Equity:

Retained earnings $$13,700\mathrm{.}00$

Contributed capital $$82,400\mathrm{.}00$

Total stockholders equity $$96,100\mathrm{.}00$

Total Liabilities & Stockholders Equity $$98,300\mathrm{.}00$

Income Statement

Sales $$16,000\mathrm{.}00$

Expenses:

Insurance expense $$(400\mathrm{.}00)$

Depreciation expense $$(100\mathrm{.}00)$

Wages expense $$(200\mathrm{.}00)$

Supplies expense $$(400\mathrm{.}00)$

Gas expense $$(200\mathrm{.}00)$

Total expenses $$(1,300\mathrm{.}00)$

Net profit $$14,700\mathrm{.}00$

Statement of Retained Earnings

Beginning retained earnings $0$

Add: Net profit $$14,700\mathrm{.}00$

Less: Dividends $$(1,000\mathrm{.}00)$

$$13,700\mathrm{.}00$

Retained earnings, Ending $$13,700\mathrm{.}00$ "Explain the closing entry process AND prepare the closing entries in journal form based on the information from the Post Company Problem."