Instructions

(a) Prepare closing entries for December 31, 2020.

(b) Determine the balance in the Owners Capital account after the entries have been posted.

(c) Prepare a Post Closing Trial Balance as of Dec. 31, 2020.

1. Presented below is an adjusted trial balance for Shawn Company, at December 31, 2020 Cash $7,700 Accounts payable $10,000 Accounts receivable 20,000 Notes payable 9,000 Prepaid insurance 15,000 Accumulated depreciation Equipment 35,000 Equipment 14,000 Depreciation expense 7,000 Service revenue 29,000 Owner's Drawings 1,500 Owner's capital 24,000 Advertising expense 1,400 Unearned service revenue 16,000 Rent expense 800 Salaries and wages expense 12,000 Insurance expense 1,600 $102.000 $102.000 Instructions