End-of-chapter Summary Problem The trial balance of Goldsmith Company shown below pertains to December 31, 20x6, which is the end of its year-long accounting period. Data needed for the adjusting entries include the following: a. Supplies on hand at year-end, $2,000. b. Depreciation on furniture and fixtures, $20,000. C. Depreciation on building, $10,000. d. Salaries owed but not yet paid, $5,000. e. f. Accrued service revenue, $12,000. Of the $45,000 balance of unearned service revenue, $32,000 was earned during the year. g. Accrued income tax expense, $35,000. End-of-chapter Summary Problem Requirements 1. Open the ledger accounts with their unadjusted balances. Show dollar amounts in thousands, as shown for Accounts Receivable: Accounts Receivable 370 76 2. Journalize the Goldsmith Company adjusting entries at December 31, 20X6. Key entries by letter, as in Exhibit 3-8. Post the adjusting entries. 3. 4. Prepare an adjusted trial balance, as shown in Exhibit 3-9. 77 Requirements End-of-chapter Summary Problem 5. Prepare the income statement, the statement of changes in equity, and the statement of Financial Position. 6. Make Goldsmith Company's closing entries at December 31, 20X6. Explain what the closing entries accomplish and why they are necessary. Show amounts in thousands. 7. Post the closing entries to Retained Earnings and compare Retained Earnings' ending balance with the amount reported on the balance sheet in requirement 5. The two amounts should be the same. Goldsmith Company 78 Trial Balance as at December 31, 20X6 Cash Accounts receivable Supplies $ 198,000 370,000 6,000 Furniture and fixtures 100,000 Accumulated deprecation - furniture and fixtures $ 40,000 Building 250,000 Accumulated depreciation - building 130,000 Accounts payable 380,000 Salary payable Unearned service revenue 45,000 Income tax payable Share capital 100,000 Retained earnings 193,000 Dividends 65,000 Service revenue 286,000 Salary expense 172,000 Depreciation expense - furniture and fixtures Depreciation expense - building Income tax expenses Miscellaneous expense Total 13,000 $1,174,000 $1,174,000