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Timber Creek prepared the following adjusted trial balance on December 31, 20X3. The company has completed preparation of financial statements and is now ready to
Timber Creek prepared the following adjusted trial balance on December 31, 20X3. The company has completed preparation of financial statements and is now ready to prepare closing entries. | |||||||
TIMBER CREEK | |||||||
Adjusted Trial Balance | |||||||
As of December 31, 20X3 | |||||||
Debits | Credits | ||||||
Cash | $ 35,600 | $ - | |||||
Accounts receivable | 23,700 | - | |||||
Supplies | 7,500 | - | |||||
Equipment | 325,700 | - | |||||
Accumulated depreciation | - | 40,400 | |||||
Accounts payable | - | 34,800 | |||||
Loan payable | - | 100,000 | |||||
Capital stock | - | 80,000 | |||||
Retained earnings | - | 70,000 | |||||
Dividends | 20,000 | - | |||||
Revenues | - | 478,400 | |||||
Rent expense | 120,000 | - | |||||
Salaries expense | 235,600 | - | |||||
Supplies expense | 18,000 | - | |||||
Interest expense | 7,400 | - | |||||
Depreciation expense | 10,100 | - | |||||
$ 803,600 | $ 803,600 | ||||||
(a) Prepare the necessary closing entries. | |||||||
(b) Use T-accounts to determine the post-closing balances of the accounts. | |||||||
(c) Prepare the post-closing trial balance. |
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