GOODS AND SERVICES, INC.
Adjusted Trial Balance
December 31, 20x9
	Debit		Credit
CASH	$ 125,000
ACCOUNTS RECEIVABLE	7,000
PREPAID ADVERTISING	200
SUPPLIES	5,000
EQUIPMENT	30,000
ACCUMULATED DEPRECIATION-EQUIPMENT			$ 6,000
ACCOUNTS PAYABLE			1,000
NOTES PAYABLE			5,000
UNEARNED REVENUE			325
INTEREST PAYABLE			250
SALARIES AND WAGES PAYABLE			2,000
UTILITIES PAYABLE			150
COMMON STOCK			20,000
PAID IN CAPITAL IN EXCESS OF PAR			32,000
RETAINED EARNINGS			54,950
DIVIDENDS	10,000
SERVICE REVENUE			58,000
SALES REVENUE			125,000
SALES DISCOUNTS	475
COST OF GOODS SOLD	60,000
RENT EXPENSE	20,000
INSURANCE EXPENSE	5,000
SALARIES AND WAGES EXPENSE	40,000
SUPPLIES EXPENSE	2,000
	$ 304,675		$ 304,675

Prepare closing entries.

Step One: Highlight all of the temporary accounts.

Step Two: Open T-accounts for all of the accounts that you have identified as temporary accounts. Enter the account balances, as displayed in the Adjusted Trial Balance.

Step Three: Type all closing journal entries in standard journal entry format.

Step Four: Post your closing entries to the T-accounts that you previously opened. (After posting, your temporary accounts should all now have zero balances).

Step Five: Prepare a Post-Closing Trial Balance.