Question
hackle Locksmiths, Inc. Adjusted Trial Balance At December 31, 2018 Account Debit Credit Cash $1,720,400 Accounts Receivable 792,000 Supplies 210,000 Prepaid Insurance 200,000 Equipment 420,000
hackle Locksmiths, Inc. | ||
Adjusted Trial Balance | ||
At December 31, 2018 | ||
Account | Debit | Credit |
Cash | $1,720,400 |
|
Accounts Receivable | 792,000 |
|
Supplies | 210,000 |
|
Prepaid Insurance | 200,000 |
|
Equipment | 420,000 |
|
Accumulated DepreciationEquipment |
| $33,000 |
Accounts Payable |
| 1,280,000 |
Unearned Service Revenue |
| 39,200 |
Wages Payable |
| 250,000 |
Interest Payable |
| 85,000 |
Notes Payable |
| 260,000 |
Common Stock |
| 1,300,000 |
Retained Earnings |
| 0 |
Dividends | 10,000 |
|
Service Revenue |
| 2,093,300 |
Wage Expense | 1,120,000 | |
Utilities Expense | 88,900 | |
Selling Expense | 64,200 | |
Administrative Expense | 189,000 | |
Repairs Expense | 66,000 | |
Interest Expense | 55,000 |
|
Insurance Expense | 135,000 |
|
Supplies Expense | 210,000 |
|
Depreciation ExpenseEquipment | 60,000 |
|
Total | $5,340,500 | $5,340,500 |
a. | Journalize and post the necessary closing entries. Omit explanations. |
b. | Prepare a post-closing trial balance as of December 31. |
Requirement a. Journalize and post the necessary closing entries. Omit explanations.
First, journalize the necessary closing entries (CJE). (Record debits first, then credits. Exclude explanations from any journal entries.)
CJE1: Start by closing revenues.
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CJE2: Close expenses for the period.
Account | December 31, 2018 | |
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CJE3: Close income summary.
Account | December 31, 2018 | |
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CJE4: Close dividends.
Account | December 31, 2018 | |
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Now, post the closing entries to the t-accounts to obtain the post-closing balances. T-accounts have been opened using the balances from the adjusted trial balance. Use the closing entry numbers as posting references to post each closing entry to the relevant accounts, then compute the ending balance of each account. Label the ending balances with End.
Bal.
(For accounts with a $0 ending balance, select "End.
Bal."
and enter "0" on the normal balance side of the t-account.)
Review the closing entries you prepared above.
Requirement b. Prepare a post-closing trial balance as of December 31. (Exclude any accounts with a zero balance from the trial balance.)
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