Closing Entries The adjusted trial balance shown below is for Bayou, Inc., at December 31:

BAYOU, INC. Adjusted Trial Balance December 31
	Debit		Credit
Cash	$3,500
Accounts Receivable	8,000
Prepaid Insurance	3,600
Office Equipment	75,000
Accum. Depreciation. - Equipment			$12,000
Accounts Payable			600
Common Stock			30,000
Retained Earnings			14,100
Dividends	7,500
Service Fees Earned			102,200
Miscellaneous Income			4,200
Salaries Expense	42,800
Rent Expense	12,900
Insurance Expense	1,800
Depreciation expense - Equipment	8,000
Income Tax Expense	8,800
Income Tax Payable			8,800
Totals	$171,900		$171,900

Required a. Prepare closing entries directly to Retained Earnings in general journal form. b. After the closing entries are posted, what is the ending balance in the Retained Earnings account? c. Prepare a post-closing trial balance as of December 31.

a.

	General Journal
Date		Description	Debit	Credit
Dec	31	AnswerAccounts PayableAccounts ReceivableAccum. Depreciation - EquipmentCashCommon stockDepreciation Expense - EquipmentDepreciation Expense TrucksDividendsIncome SummaryIncome Tax ExpenseIncome Tax PayableInsurance ExpenseMiscellaneous IncomeOffice EquipmentPrepaid insuranceRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedUnearned Service Fees	$Answer	$Answer
		Miscellaneous Income	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableAccum. Depreciation - EquipmentCashCommon stockDepreciation Expense - EquipmentDepreciation Expense TrucksDividendsIncome SummaryIncome Tax ExpenseIncome Tax PayableInsurance ExpenseMiscellaneous IncomeOffice EquipmentPrepaid insuranceRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedUnearned Service Fees	Answer	Answer
		To close the Revenue accounts.
	31	AnswerAccounts PayableAccounts ReceivableAccum. Depreciation - EquipmentCashCommon stockDepreciation Expense - EquipmentDepreciation Expense TrucksDividendsIncome SummaryIncome Tax ExpenseIncome Tax PayableInsurance ExpenseMiscellaneous IncomeOffice EquipmentPrepaid insuranceRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedUnearned Service Fees	Answer	Answer
		Salaries Expense	Answer	Answer
		Rent Expense	Answer	Answer
		Insurance Expense	Answer	Answer
		Depreciation Expense - Equipment	Answer	Answer
		Income Tax Expense	Answer	Answer
		To close the expense accounts.
	31	AnswerAccounts PayableAccounts ReceivableAccum. Depreciation - EquipmentCashCommon stockDepreciation Expense - EquipmentDepreciation Expense TrucksDividendsIncome SummaryIncome Tax ExpenseIncome Tax PayableInsurance ExpenseMiscellaneous IncomeOffice EquipmentPrepaid insuranceRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedUnearned Service Fees	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableAccum. Depreciation - EquipmentCashCommon stockDepreciation Expense - EquipmentDepreciation Expense TrucksDividendsIncome SummaryIncome Tax ExpenseIncome Tax PayableInsurance ExpenseMiscellaneous IncomeOffice EquipmentPrepaid insuranceRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedUnearned Service Fees	Answer	Answer
		To close the dividends account.

b. Balance in Retained Earnings at December 31 $Answer

35700

c.

	BAYOU, INC. Post-Closing Trial Balance December 31
		Debit		Credit
	Cash	$Answer		$Answer
	Accounts Receivable	Answer		Answer
	Prepaid Insurance	Answer		Answer
	Office Equipment	Answer		Answer
	Accum. Depreciation. - Equipment	Answer		Answer
	Accounts Payable	Answer		Answer
	Income Tax Payable	Answer		Answer
	Common Stock	Answer		Answer
	Retained Earnings	Answer		Answer
	Totals	$Answer		$Answer87,100