Chandler, Inc. is owned by Roscoe Chandler and provides appraisal services to individuals and companies wishing to purchase and sell fine art. Chandler, Inc. began business
on January 1, 2017, 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.
Adjusted Trial Balance
Before the closing entries are journalized, you begin with an adjusted trial balance. The closing entries are essentially the link from the adjusted trial balance to the post-
closing trial balance.
Chandler, Inc. is owned by Roscoe Chandler and provides appraisal services to individuats and companies wishing to purchase and sell fine art. Chandler, inc. began business on January 1, 2017, and is just completing its first year of business. Roscon asks for your help in completing the accounting cycle for the company by assisting with the closing process, Adjusted Trial Balance Before the closing entries are journalized, you begin with an adjusted trial balance. The closing entries are essentially the link from the adjusted trial balance to the postclosing trial balance. The final step of the accounting cycle is the closing process. The main goal of this stage of the cycle is to ensure that the balance of each temporary account is returned to zero and that net income is transferred to the retained earnings account. The first step in successfully undertaking the closing process is to understand the difference between a temporary account and a permanent account, Roscoe has some questions about the grocess. Answer the following questions (1) - (3). If an amount is zero, enter " ON. 1. If a temporary account has an ending batance of \$57,000, what is its beginning balance for the following accounting period? 1 2. If a permanent account has an ending balance of $57,000, what is its beginning balance for the following accounting period? 3 3. Roscoe will be preparing his yearly financial statements after completing Chandler, Inc.'s closing process, and is somewhat confused about the characteristics of the accounts. He has started by creating the following chart, and asks for your heip in completing it. (5elect "Yes" or "No" from the below dropdowns.) Feedsack FCheck My Work 1. Review the definition of a temporary account and what happens to it at the end of the accounting period. 2. Review the definition of a permanent account and what happena to at the end of the accounting period. Roscoe's Journal Roscoe has attempted to joumalize the closing entries for Chandier, Inc, on this panel. He's not sure if he's journalized the entries correctly, and asks you to review them. You find that one entry is correct, but the other is incorrect. Determine which entry is incorrect, and joumalize both closing entries for Chandler, Inc. as of Dec. 31 . Roscoe has attempted to journalize the closing entries for Chandiler, Inc, on the Roscoe's Joumal panel. He's not sure if he's journalized the entries correctly, and asks you to review them. You find that ene entry is correct, but the other is incorrect. Determine which entry is incorrect, and joumalize both closing entries for Chandier, Inc, as of Dec. 31 . If an amount box does not require an entry, leave it blank. Roscoe has attempted to joumalize the closing entries for Chandler, Inc, on the Roscoe's Journal panel. He's not sure if he's journalized the entries correctly, and asks you review them. You find that one entry is correct, but the other is incorrect. Determine which entry is incomect, and journalize both closing entries for Chandier, Inc, as of Dec. 31 . If an amount box does not require an entry, leave it blank. Post-Closing Trial Ealance 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 Chandier, Inc., and asks if you would prepare a post-closing trial balance for the company. If an amount box does not require an entry, leave it blank. Feedrack "Check My Wos 1. Review the defintion of a temporary account and what happens to 3 at the end of the accouming period. 2. Review the definition of a permanent account and what happens to a at tie end of the accounting period. Roscoe's Journal Roscoe has attempted to joumalize the closing entries for Chandier, Inc, on this panel. He's not sure if he's journalized the entries correctly, and asks you to review them. You find that one entry is correct, but the other is incorrect. Determine which entry is incorrect, and journafize both closing entries for Chandler, Inc, as of Dec. 31
