Question 3 [20 points] Following are the financial statements for Vision Consulting Inc. at February 28, 2014. Use this information to prepare the closing entries and to calculate the post-closing balance in the Retained earnings account. Use the numbers below as the description for the corresponding closing entry. 1. Close all temporary credit balance accounts to the income summary account. 2. Close all temporary debit balance accounts to the income summary account. 3. Close the income summary (net income) to retained earnings. 4. Close the income summary (net loss) to retained earnings. 5. Close dividends to retained earnings. Enter the dates in the format dd/mmm (ie. 15/Jan). General Journal Account/Explanation Page GJS F Debit Date Credit + = Vision Consulting Inc. Income Statement For Month Ended February 28, 2014 Revenues Rent earned 9,750 Consulting revenue earned 7,620 Total revenues Expenses Depreciation expense, furniture 1,610 Rent expense 9,960 Total expenses Net income 17,370 + = 11,570 5,800 + = Vision Consulting Inc. 17,370 + - Total revenues Expenses Depreciation expense, furniture Rent expense Total expenses Net income 1,610 9,960 + 11,570 5,800 + Post-closing balance in Retained earnings = Vision Consulting Inc. Statement of Changes in Equity For Month Ended February 28, 2014 Share Retained Total Capital Earnings Equity Balance, February 1 6,200 4,570 10,770 Issuance of shares 5,900 5,900 Net income 5,800 5,800 Dividends (1,440) (1,440) Balance, February 28 12,100 8,930 21,030 Vision Consulting Inc. Balance Sheet February 28, 2014 Assets Cash Accounts receivable Furniture 7.100 11,470 19,750 7 in 1970 Balance, February 1 Issuance of shares Net income Dividends Balance, February 28 Capital Earnings Equity 6,200 4,570 10,770 5,900 5,900 5,800 5,800 (1,440) (1,440) 12,100 8,930 21,030 7,100 11,470 19,750 7,480 12.270 30,840 Vision Consulting Inc. Balance Sheet February 28, 2014 Assets Cash Accounts receivable Furniture Accumulated depreciation, furniture Total assets Liabilities Unearned rent Rent payable Total liabilities Equity Share capital Retained earnings Total equity Total liabilities and equity 2,260 7,550 9,810 12,100 8,930 21.030 30,840