Step 10: Closing Entries

Close all temporary income statement accounts and create closing entries.

Step 11: Post Closing Trial Balance

Prepare the post-closing trial balance for the next accounting period.

Janie's Cupcake Inc. Income Statement Quarter ended Sept, 30th 2016 Revenue Bakery Sale 36500 525 5 37025 Merchandise Sale Total Revenue Cost of Goods sold Gross Profit Expenses 36702 Permit & Licensing Expense Rent Expense Wage Expense Utlity Expense Advertising Expense 325 5 6.000 2976 420 Deprecilation Expense 500 Interest Expense Baking Supplies Expense 55o0 Miscelleneous Expense6 Insurance Expense 75 650 550 (27246 9456 Total Expenses Net Income Janie's Cupcake Inc Statement of Retained Earnings Quarter ended Sept, 30th 206 Beginning Balance (bal figure 950 Add Net Income Less: Dividends Ending Balance 9456 5 (5 9406 Janie's Cupcake In as on 30-Sept-16 Assets Cath Accounts Receivables Prepaid Rent Prepaid Insurance Baking Supples Miscelleneous Supplies Inventory $8.000 Accumulated depreciation S Net Equipment Accounts Payable Interest Payable Wages Payable Note Payable 10 000 Total Liability tquity Retained tarnings Common Stock 9.406 18.000 2740 Total Equit)y Total Liabilit