Chandler Company Adjusted Trial Balance The Closing Process Chart of Accounts Chandler Company Chandler Company is owned by Roscoe Chandler and provides appraisal services to individuals and companies wishing to purchase and sell fine art. Chandler Company began business on January 1, 2018, and is just completing its first year of business. Roscoe asks for your help in completing the accounting cycle for the company by assisting with the closing process Chart of Accounts CHART OF ACCOUNTS Chandler Company General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 42 Rent Revenue 16 Prepaid Insurance 43 Interest Revenue 18 Equipment General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 42 Rent Revenue 16 Prepaid Insurance 43 Interest Revenue 18 Equipment 19 Accumulated Depreciation-Equipment EXPENSES 51 Salaries Expense LIABILITIES 52 Selling Expense 21 Accounts Payable 53 Income Taxes Expense 22 Salaries Payable 54 Depreciation Expense-Equipment 24 Income Taxes Payable 55 Insurance Expense 59 Miscellaneous Expense EQUITY 31 Roscoe Chandler, Capital 32 Roscoe Chandler, Drawing Chandler Company ADJUSTED TRIAL BALANCE December 31, 2018 ACCOUNT TITLE DBIT CREDIT 1Cash 2 Accounts Receivable 76,000.00 29,000.00 3Prepaid Insurance 16,000.00 4 Equipment 60,000.00 5ACCumulated Depreciation-Equipment 6Accounts Payable 40,000.00 6,000.00 7 Salaries Payable 8,000.00 Income Taxes Payable 4,000.00 Roscoe Chandler, Capital 20,000.00 9 10 Roscoe Chandler, Drawing 5,000.00 11 Fees Earned 175,600.00 12 Rent Revenue 92,000.00 |13 Interest Revenue 17,200.00 14 Salaries Expense 71,000.00 15 Selling Expense 16 Income Taxes Expense 25,600.00 15,000.00 47,200.00 17 Depreciation Expense-Equipment |13 Insurance Expense 17,000.00 19 Miscellaneous Expense 1,000.00 362,800.00 362,800.00 20 Totals Roscoe has attempted to prepare the closing entries for Chandler Company on this panel. He's not sure if he's entered the journal entries correctly, and asks you to review them. You find that one entry is correct, but the other is incorrect Detemine which entry is incorrect, and joumalize both closing entries for Chandler Company as of Dec. 31 on the Journal panel!. PAGE 25 ACCOUNTING EQUATION JOURNAL POST. REF LIABILITIES DATE DESCRIPTION DEBIT CREDIT ASSETS EQUITY Closing Entries 1 2 461,600.00 Dec 31 Roscoe Chandler, Capital 175,600.00 Fees Eamed 31 92,000.00 4 Rent Revenue Interest Revenue 17,200.00 5 Salaries Expense 71,000.00 Selling Expense 25,600.00 7 Income Taxes Expense 15,000.00 T 9 Depreciation Expense-Equipment 47,200.00 10 17,000.00 Insurance Expense T Miscellaneous Expense 1,000.00 T 11 Roscoe Chandler, Capital 31 5,000.00 12 13 Roscoe Chandler, Drawing 5,000.00 Roscoe has attempted to prepare the closing entries for Chandler Company on the Roscoe's Journal panel. He's not sure if he's entered the journal entries correctly, and asks you to review them. You find that one entry is correct, but the other is incorrect. Refer to the Chart of Accounts for exact wording of account Chandler Company as of Dec. 31 in the following joumal. Determine which entry is incorrect, and jounalize both closing entries ACCOUNTING EQUATION JOURNAL DESCRIPTION DATE DEBIT CREDIT EQUITY Closing Entries Dec. 31 Fees Eamed 2 Rent Revenue Interest Revenue Salaries Expense Selling Expense Income Taxes Expense 7 Depreciation Expense-Equipment Insurance Expense Miscellaneous Expense 10 11 12 13 Post-Closing Trial Balance The post-closing trial balance shows all the permanent accounts with their updated values after the temporary accounts have been reduced to zero balance for the next accounting cycle. Also, the post-closing trial balance is meant to ensure that debits equal credits post-close Roscoe is very happy with your work on the closing entries for Chandler Company, and asksif you would prepare a post-closing trial balance for the company Chandler Company POST-CLOSING TRIAL BALANCE December 31, 2018 ACCOUNT TITLE DEBIT 67,000.00 Cash 2Accounts Receivable 29,000.00 3Prepaid Insurance 16,000.00 4 Equipment 60,000.00 Accumulated Depreciation-Equipment 40,000.00 6Accounts Payable 6,000.00 Salaries Payable 8,000.00 8Income Taxes Payable 4,000.00 9Roscoe Chandler, Capital 2,000.00 10 Totals