Chandler Company Chander Company is owned by Roscoe Chandler and provides appraisal services to individuals and companies wishing to purchase and so fine art. Chander Company began business on January 1, 2018, and is just completing its trot year of business. Roscoe asks for your help in completing the accounting cycle for the company ty listing with the closis.com Chart of Accounts ASSETS 11 Cash 12 Accounts Receivable 16 Prepaid Insurance 18 Equipment 19 Accumulated Depreciation Equipment REVENUE 41 Foes Eamed 42 Rent Revenue 43 interest Revenue LIABILITIES 21 Accounts Payable 22 Salaries Payable 24 Income Taxes Payable EXPENSES 51 Salaries Expense 52 Selling Expense 53 Income Taxes Expense 54 Depreciation Expense-Equipment 55 Insurance Expense 59 Miscellaneous Expense EQUITY 31 Roscoe Chandler, Capital 32 Roscoe Chandler, Drawing Chandler Company Chart of Account Adjusted Trial Balance The Closing Process Adjuuled Trial Balance Chandler Company ADJUSTED TRIAL BALANCE December 31, 2018 ACCOUNT TITLE CREDIT 1 Cash DEBIT 76,000.00 29.000.00 16,000.00 60.000.00 40.000.00 2 Accounts Receivable > Prepaid Insurance - Equipment Accumulated Depreciation Equipment Accounts Payable 7 Salaries Payable Income Taxes Payable Roscoe Chandler, Capital 10 Moscoe Chandler, Drawing 6.000.00 3.000.00 4,000.00 20,000.00 5,000.00 11 Fees Eamed 175.600.00 Adjusted Trial Balance * Income Taxes Payable 4,000.00 9 Roscoe Chandler, Capital 20,000.00 10 Roscoe Chandler, Drawing 5,000.00 11 Fees Earned 175,600.00 12 Rent Revenue 92,000.00 13 Interest Revenue 17,200.00 71,000.00 25,600.00 15,000.00 14 Salaries Expense 15 Selling Expense 16 Income Taxes Expense 17 Depreciation Expense-Equipment 18 Insurance Expense 19 Miscellaneous Expense 47,200.00 1 17,000.00 1,000.00 20 Totals 362,800.00 362,800.00 Chandler Company Chart of Accounts Adjusted Thal Balance The Closing Process The Closing Process The first stop of the accounting cycle is the closing process. The main goal of this stage of the cycle is to ensure that the balance of each temporary account is rotumad to zero and that not income transferred to the owners capital nocount. The first step in successfully undertaking the closing procesa in to understand the diference between a Magoment and a sermocent Access, Foto has some questions about the process Answer the following questions (1) - (9) 1.lt a temporary account has an ending balance of $e2,000, what is its beginning balance for the following accounth period there is no amount or an amount is zero, antor *o* 2. If a permanent account has an ending balance of $62,000, what is its beginning balance for the following accounting period $ 3. Roscoe will be preparing his yearly financial statements after completing Chandler Company's closing process, and is a somewhat confused about the characteristics of the accounts on his Chart of Accounts. He has started by creating the following chart, and asks for your help in completing it. For each account or type of account listed, choose all descriptions that apply. Potom Mastery Problem Completing the Accounting Cycle Chandler Canon Chart of Account Adjusted Tra Bano The Closing Process The Closing Process 3. Hou will be preparing his portarcial oments after completing Chundier Company's closing proces, und is a somewhat conned about the characteristics of the counts on his Curtor Accounts. He has started by creating the following chart, and asks for your help in completing it. For each account or type of account sted, there are that Cloud to Owners Capital Account Temporary Account Permanent Account Yes No Revenues OO Asset accounts OOO Expenses Liability counts OOOOO OOO Owner's drawing account e OO Chandler Company Chart of Account Adjusted Trial Balance The Closing Process Journal Roscoe hus attempted to prepare the closing entries for Chander Company on the Roscoe's Journal panel. He's not sure it he's entered the journal entrien correctly, and asks you to review. em. You trid that one entry is correct, but to other as incorrect. Refer to the Chart of Accounts for exact wording of account in Determine wrich entry in incorrect and found both closing entries for Chander Company as of Dec. 31 n the following ournal POE 35 JOURNAL ACCOUNTING EQUATION DATE POST, REY DEBIT CREDIT ASSETS LIAUTIESQUITY DESCRIPTION Closing Free 5 Check My Work 1 more Check My Work uses remaining Post Closing Trial Balance Chandler Company POST-CLOSING TRIAL BALANCE December 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Prepaid Insurance 4 Equipment 5 Accumulated Depreciation Equipment 6 Accounts Payable 7 Salaries Payable 8 Income Taxes Payable 9 Roscoe Chandler, Capital 10 Totals