Prepare closing entries at December 31, 2016

Post to related ledger accounts using standard three column form

Prepare a post closing trial balance at December 31, 2016

Problem 2 The trial balance for Happy Company is as follows. Happy Company Trial Balance December 31, 2016 Account No 101 Cash 17,800 112 Accounts Recivable 14,400 126 Supplies 2,300 130 Prepaid Insurance 4,800 140 Land 14.000 141 Bulidings 46,000 18,000 142 Accumulated Depreciation Building 200 Notes Payable 24,000 8,000 2001 Accounts Payable 208 Unearned Service Revenue 5,600 311 Common Stock 15,000 320 Retained Earnings 9,700 332 Dividends 6,000 400 Service Revenue 83,000 725 Salaries and Wages Expense 58,000 S 163,300 163,300 In addition to those accounts listed on the trial balance, the chart of accounts for Ba Inc. also contains the following accounts and account numbers: No. 230 Interest Payable No. 631 Supplies Expense No. 711 Depreciation Expense No. 718 Interest Expense No. 722 Insurance Expense Other data: (a) A count of supplies shows $1,100 of unused supplies on December 31 (b) Three-fourths of the unearned rent revenue has been recognized for services performed (c) Prepaid insurance is a 1-year policy starting July 1, 2016. (d) The interest rate on notes payable is 12%. The 4-year notes payable was issued on January 1 2016. $6,000 of the notes payable become due in 2017 (e) Annual depreciation is $2,300 on the buildings