King Celsey Company uses a perpetual inventory system. The adjusted trial balance of King Celsey Company follows: (Click the icon to view the adjusted trial balance.) Data table Read the requirements. Requirement 1. Journalize the closing entries at December 31. Post to the Income Summary account as an accuracy che the income statement. Also post to Celsey, Capital, whose balance should agree with the amount reported on the balance Begin by journalizing the closing entries. (Record debits first, then credits. Select the explanation on the last line of the jour King Celsey Company Adjusted Trial Balance December 31, 2016 Balance Start by closing revenues. Do not close the expenses or contra-revenue accounts; this will be done in the next step. Account Title Debit Credit Date Accounts and Explanation Debit Credit Cash $ 4,000 Dec. 31 38,000 Clos. 1 21,500 1,100 Accounts Receivable Merchandise Inventory Office Supplies Prepaid Rent Furniture Accumulated Depreciation Furniture Accounts Payable Salaries Payable Interest Payable 1,600 39,600 Close expenses and any contra-revenue accounts for the period. $ 14,000 6,900 Date Accounts and Explanation Debit Credit 500 Dec. 31 400 Clos. 2 Unearned Revenue 2,200 Notes Payable, long-term 29,000 King Celsey Company uses a perpetual inventory system. The adjusted trial balance of King Celsey Company follows: (Click the icon to view the adjusted trial balance.) Data table Read the requirements. Requirement 1. Journalize the closing entries at December 31. Post to the Income Summary account as an accuracy che the income statement. Also post to Celsey, Capital, whose balance should agree with the amount reported on the balance Begin by journalizing the closing entries. (Record debits first, then credits. Select the explanation on the last line of the jour King Celsey Company Adjusted Trial Balance December 31, 2016 Balance Start by closing revenues. Do not close the expenses or contra-revenue accounts; this will be done in the next step. Account Title Debit Credit Date Accounts and Explanation Debit Credit Cash $ 4,000 Dec. 31 38,000 Clos. 1 21,500 1,100 Accounts Receivable Merchandise Inventory Office Supplies Prepaid Rent Furniture Accumulated Depreciation Furniture Accounts Payable Salaries Payable Interest Payable 1,600 39,600 Close expenses and any contra-revenue accounts for the period. $ 14,000 6,900 Date Accounts and Explanation Debit Credit 500 Dec. 31 400 Clos. 2 Unearned Revenue 2,200 Notes Payable, long-term 29,000 - Data table 400 2,200 29,000 21,100 40,000 266,000 Interest Payable Unearned Revenue Notes Payable, long-term Celsey, Capital Celsey, Withdrawals Sales Revenue Sales Returns and Allowances Sales Discounts Interest Revenue Cost of Goods Sold Salaries Expense Rent Expense Utilities Expense Depreciation Expense Furniture Supplies Expense 4,000 11,000 1,000 83,000 76,700 7,200 6,400 2,800 2,300 1,900 Interest Expense $ 341,100 $ 341,100 Total King Celsey Company uses a perpetual inventory system. The adjusted trial balance of King Celsey Company follows: (Click the icon to view the adjusted trial balance.) Read the requirements. Close expenses and any contra-revenue accounts for the period. Date Accounts and Explanation Debit Credit Dec. 31 Clos. 2 Close Income Summary. King Celsey Company uses a perpetual inventory system. The adjusted trial balance of King Celsey Company follows: (Click the icon to view the adjusted trial balance.) Read the fequirements Post to the Income Summary account as an accuracy check on net income. Recall that the credit balance closed out of Income Summary should equal net income as computed on the income statement. Also post to Celsey, Capital, whose balance should agree with the amount reported on the balance sheet. The Income Summary T-account and the Celsey, Capital T-account, along with it's adjusted balance, have been opened for you. Post the closing entries to these two accounts. Use "Clos." and the corresponding number as shown in the journal entry as posting references"Clos. 1", "Clos. 2", etc. Post any closing entries to the accounts and then calculate the post-closing balance ("Bal.") of each account. For any accounts with a zero balance after closing, select a "Bal." reference and enter a "0" on the normal side of the account. For Income Summary, calculate and enter the balance ("Bal.") before posting the entry to close out the account. Post the entry to close Income Summary account on the same line as you entered the balance prior to closing the second line) and then show the post-closing balance ("Bal.") on the last (third) line of the account. Review the closing entries you prepared above. Income Summary Celsey, Capital 21,100 Adj. Bal. Requirement 2. Prepare the company's multi-step income statement, statement of owner's equity, and balance sheet in report form for year ended December 31, 2016. Note: King Celsey doesn't separate its operating expenses as either selling or administrative and Celsey made no contributions during the year. Begin by preparing the multi-step income statement for the year ended December 31, 2016. Note: King Celsey doesn't separate its operating expenses as either selling or administrative. (Use a minus sign or parentheses to show other expenses.) King Celsey Company Income Statement King Celsey Company uses a perpetual inventory system. The adjusted trial balance of King Celsey Company follows: E: (Click the icon to view the adjusted trial balance.) Read the fequirements Requirement 2. Prepare the company's multi-step income statement, statement of owner's equity, and balance sheet in report form for year ended December 31, 2016. Note: King Celsey doesn't separate its operating expenses as either selling or administrative and Celsey made no contributions during the year. Begin by preparing the multi-step income statement for the year ended December 31, 2016. Note: King Celsey doesn't separate its operating expenses as either selling or administrative. (Use a minus sign or parentheses to show other expenses.) King Celsey Company Income Statement Year Ended December 31, 2016 Less: King Celsey Company uses a perpetual inventory system. The adjusted trial balance of King Celsey Company follows: E (Click the icon to view the adjusted trial balance.) Read the fequirement: .... Net Income Prepare the company's statement of owner's equity for year ended December 31, 2016. Note: Celsey made no contributions during the year. Enter any increases in capital prior to the subtotal and any decreases to capital below the subtotal. (Exclude any zero-balance events for the period from the statement of owner's equity. Use a minus sign or parentheses to show a decrease in capital.) King Celsey Company Statement of Owner's Equity Year Ended December 31, 2016 King Celsey Company uses a perpetual inventory system. The adjusted trial balance of King Celsey Company follows: (Click the icon to view the adjusted trial balance.) Read the fequirements Prepare the company's statement of owner's equity for year ended December 2016. Note: Celsey made no contributions during the year. Enter any increases in capital prior to the subtotal and any decreases to capital below the subtotal. (Exclude any zero-balance events for the period from the statement of owner's equity. Use a minus sign or parentheses to show a decrease in capital.) King Celsey Company Statement of Owner's Equity Year Ended December 31, 2016 Celsey, Capital, January 1, 2016 Celsey Capital, December 31, 2016 Prepare the company's balance sheet in report form at December 31, 2016. (lf a box is not used in the balance sheet, leave the box empty; do not select a label or enter a zero.) King Celsey Company uses a perpetual inventory system. The adjusted trial balance of King Celsey Company follows: (Click the icon to view the adjusted trial balance.) Read the fequirements .... Prepare the company's balance sheet in report form at December 31, 2016. (If a box is not used in the balance sheet, leave the box empty; do not select a label or enter a zero.) King Celsey Company Balance Sheet December 31, 2016 Assets Less: King Celsey Company uses a perpetual inventory system. The adjusted trial balance of King Celsey Company follows: (Click the icon to view the adjusted trial balance.) Read the fequirements Liabilities III Owner's Equity Requirement 3. Compute the gross profit percentage for 2016. (Round the gross profit percentage to the nearest tenth of a percent, X.X%.) Review the income statement you prepared above. King Celsey Company uses a perpetual inventory system. The adjusted trial balance of King Celsey Company follows: (Click the icon to view the adjusted trial balance.) Read the fequirements Owner's Equity Requirement 3. Compute the gross profit percentage for 2016. (Round the gross profit percentage to the nearest tenth of a percent, X.X%.) Review the income statement you prepared above. Gross profit % %