Question
Paradise Travel's adjusted trial balance as of the end of its annual accounting period is shown below: (a) Prepare the necessary closing entries. (b) Prepare
Paradise Travel's adjusted trial balance as of the end of its annual accounting period is shown below:
(a) Prepare the necessary closing entries. (b) Prepare a post-closing trial balance.
| Paradise Travel Adjusted Trial Balance December 31 |
|
| Debit. | Credit |
| Cash | $ 25,000 |
|
| Accounts receivable | 15,000 |
|
| Office supplies | 4,300 |
|
| Office equipment | 29,600 |
|
| Accumulated depreciationOffice equipment |
| $5,000 |
| Long-term notes payable |
| 25,000 |
| D. Chambers, Capital |
| 30,260 |
| D. Chambers, Withdrawals | 1,000 |
|
| Fees earned |
| 75,000 |
| Salaries expense | 32,800 |
|
| Rent expense | 16,800 |
|
| Depreciation expenseOffice equipment | 3,960 |
|
| Advertising expense | 4,000 |
|
| Office supplies expense | 2,800 |
|
| Totals | $135,260 | $135,260 |
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