General ledger post closing trial balance and income statement and calculation of retain earnings

Problem 4-3 Gray Co. Revenue and Expense Accounts This problem repeats Gray Co.'s February transactions from Chapter 4. Print the forms on the following pages and use them to complete this problem. Requirement 1 Enter the beginning account balance into each of the Revenue and Expense accounts. Requirement 2 Look at the General Journal and notice that the February entries have already been made as they appeared in Problem 3-3 from Chapter 3. Below are repeated the February transactions for those journal entries. For those entries in the General Journal that contain the Retained Earnings account name, make corrections by crossing-out Retained Earnings and replacing it with the correct Revenue or Expense account name. Feb 01 Sale of inventory to a customer - selling price $9,000 - cost of inventory sold $5,000 - customer paid cash. Feb 02 Pay $700 cash to landlord for February's rent. Feb 07 Pay $1,000 cash to employees for wages they have earned. Feb 10 Sale of inventory to a customer - selling price $4,500 - cost of inventory sold $2,000 - customer will pay sometime in the future. Feb 11 Purchase additional inventory - pay $7,500 cash for the inventory. Feb 26 Pay $900 cash to employees for wages they have earned. Feb 27 Collect $1,500 cash from the customer who was sold to on credit on Feb. 10. Feb 28 Adjust the Interest Payable account to record the $40 of interest owned to the bank - interest will be paid in March. Requirement 3 Post the entries from the General Journal to the General Ledger accounts. Requirement 4 Except for Retained Earnings, compute an ending balance for each General Ledger account. For Retained Earnings, place the current balance in the account. Requirement 5 Prepare a Pre-Closing Trial Balance