QUESTION 1

Following is the adjusted trial balance of Post Company. Based on this information prepare a Balance Sheet, Income Statement and Statement of Retained Earnings.

POST COMPANY
ADJUSTED TRIAL BALANCE
	Debit	Credit
Cash	80,000
Accounts Receivable	11,100
Prepaid Insurance	1,500
Equipment	10,000
Accumulated Depreciation		4,000
Supplies	500
Accounts Payable		2,900
Wages Payable		300
Unearned Revenue		1,500
Contributed Capital		80,000
Retained Earnings		0
Sales		17,000
Gas Expense	400
Supply Expense	400
Insurance Expense	200
Depreciation Expense	200
Wage Expense	400
Dividends	1,000
	99,700	99,700

QUESTION 2

Explain the closing entry process and prepare the closing entries in journal form based on the information in question 3.

QUESTION 3

MATRIX INC. BANK RECONCILIATION
Cash balance per bank	$8,500
Cash balance per books (general ledger)	$7,320
Outstanding checks	$3,6000
Check mailed to the bank for deposit had
not reached the bank by the statement
date.	$2,050
NSF check returned by the bank for
accounts receivable	$200
July interest earned on the bank statement	$10
Check no. 700 for misc. expense cleared
the bank for $200; erroneously recorded
in the Matrix books for $20
Prepare a bank reconciliation.
Shown the accounting entries that must be made by Matrix in journal entry and T-Account format.