Closing Entries

From the work sheet shown below, prepare the following:

1. Prepare closing entries for Gimbel's Gifts and Gadgets in a general journal. If an amount box does not require an entry, leave it blank.

2. Prepare a post-closing trial balance.

Gimbel's Gifts and Gadgets Work Sheet For Year Ended December 31, 20-1
	TRIAL BALANCE		ADJUSTMENTS		ADJUSTED TRIAL BALANCE		INCOME STATEMENT		BALANCE SHEET
ACCOUNT TITLE	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT
Cash	8,206				8,206				8,206
Accounts Receivable	6,710				6,710				6,710
Merchandise Inventory	14,271		(b) 16,800	(a) 14,271	16,800				16,800
Supplies	666			(c) 352	314				314
Prepaid Insurance	820			(d) 205	615				615
Building	76,500				76,500				76,500
Accum. Depr.Building		13,005		(e) 3,825		16,830				16,830
Accounts Payable		5,275				5,275				5,275
Wages Payable				(f) 267		267				267
Sales Tax Payable		310				310				310
J. M. Gimbel, Capital		85,644				85,644				85,644
J. M. Gimbel, Drawing	8,200				8,200				8,200
Income Summary			(a) 14,271	(b) 16,800	14,271	16,800	14,271	16,800
Sales		86,070				86,070		86,070
Sales Returns and Allowances	1,900				1,900		1,900
Purchases	54,420				54,420		54,420
Purchases Returns and Allowances		2,801				2,801		2,801
Purchases Discounts		1,061				1,061		1,061
Freight-In	762				762		762
Wages Expense	16,969		(f) 267		17,236		17,236
Advertising Expense	767				767		767
Supplies Expense			(c) 352		352		352
Phone Expense	2,094				2,094		2,094
Utilities Expense	1,345				1,345		1,345
Insurance Expense			(d) 205		205		205
Depr. ExpenseBuilding			(e) 3,825		3,825		3,825
Miscellaneous Expense	388				388		388
Interest Expense	148				148		148
	194,166	194,166	35,720	35,720	215,058	215,058	97,713	106,732	117,345	108,326
Net Income							9,019			9,019
							106,732	106,732	117,345	117,345

1. Prepare closing entries for Gimbel's Gifts and Gadgets in a general journal. If an amount box does not require an entry, leave it blank.

Page: 1

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-1 Dec. 31						1
2							2
3							3
4							4
5							5
6	Dec. 31						6
7							7
8							8
9							9
10							10
11							11
12							12
13							13
14							14
15							15
16							16
17							17
18							18
19							19
20	Dec. 31						20
21							21
22							22
23	Dec. 31						23
24							24

2. Prepare a post-closing trial balance.

Gimbel's Gifts and Gadgets
Post-Closing Trial Balance
December 31, 20-1
Account	Debit balance	Credit balance
Total