Example Three:

Use a Trial Balance to:

Calculate Gross Profit (Gross Margin), Current Assets, Long-Term Assets (PPE), Current Liabilities, and Long-Term Liabilities

Prepare Closing Entries, and

Calculate ending balance in Retained Earnings.

Account Name	Debit	Credit
Cash	143,500
Accounts Receivable	23,250
Allowance for Uncollectible Accounts		465
Inventory	20,750
Prepaid Rent	3,000
Equipment	30,000
Accumulated Depreciation Equipment		2,300
Accounts Payable		5,000
Salaries Payable		900
Unearned Revenue		3,500
Notes Payable		45,000
Common Stock		150,000
Retained Earnings		10,250
Dividends	1,500
Sales Revenue		133,250
Cost of Goods Sold	69,000
Operating Expenses	20,000
Salaries Expense	30,900
Depreciation Expense	2,300
Rent Expense	6,000
Bad Debt Expense	465
Totals	350,665	350,665

Calculate

gross profit (gross margin) ________________

total current assets __________________

total long-term (PPE) assets ________________

total current liabilities ________________

total long-term liabilities ________________

Prepare the Closing Entries.

Date	Account Name	Debit	Credit

Calculate the ending balance of retained earnings_________________________.

Retained Earnings