Use Excel

1 Create an adjusted trial balance. Use very few accounts 3 asset, 2 liability 3 stockholder's equity, 1 revenue, 2 expense) Do not do a worksheet. You must have the contra accounts dividends and accumulated depreciation-eq. Make up the numbers. It must balance.

2. Create an income statement, retained earnings statement and balance sheet. Use page 22 as a guide in the book or chapter 1, 1.5 in the e-book or look at the homework you manually did from chapter 2.

3. Journalized the closing entries. Zero out the income statement accounts to income summary, then zero out income summary to retained earnings. Zero out dividends to retained earnings. (You have just increased the equity of the company by the net income, minus what was given to the owners.)

4. Post the closing journal entries to the ledger. Use the adjusted trial balance for the beginning balances. Use a three column format. After your done all the income statement and dividend accounts should be zero to get ready for the next month.

5. Create a post closing trial balance.

The photos below are examples unrelated to this question.

Edit: You are creating all of these sheets from scratch, using your own numbers and titles that you make up. Make up the numbers, it just needs to balance. Please use the account titles that are listed in the photos below.

SOFTBYTE INC. Income Statement For the Month Ended September 30, 2017 $4,700 Revenues Service revenue Expenses Salaries and wages expense Rent expense Advertising expense Utilities expense Total expenses Net income $900 600 250 200 1,950 $2,750 1 SOFTBYTE INC. Retained Earnings Statement For the Month Ended September 30, 2017 Retained earnings, September 1 Add: Net income $ 0 2,750 2,750 1,300 $1,450 Less: Dividends Retained earnings, September 30 SOFTBYTE INC. Balance Sheet September 30, 2017 $ 8,050 1,400 1,600 7,000 $18,050 Assets Cash Accounts receivable Supplies Equipment Total assets Liabilities and Stockholders' Equity Liabilities Accounts payable Stockholders' equity Common stock $15,000 Retained earnings 1,450 Total liabilities and stockholders' equity $ 1,600 16,450 $18,050 $3,300 (1,950) 1,350 SOFTBYTE INC. Statement of Cash Flows For the Month Ended September 30, 2017 Cash flows from operating activities Cash receipts from revenues Cash payments for expenses Net cash provided by operating activities Cash flows from investing activities Purchase of equipment Cash flows from financing activities Sale of common stock $15,000 Payment of cash dividends (1,300) Net increase in cash Cash at the beginning of the period Cash at the end of the period (7,000) 13,700 8,050 $8,050 PIONEER ADVERTISING INC. Post-Closing Trial Balance October 31, 2017 Debit Credit $ 15,200 200 1,000 550 5,000 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Unearned Service Revenue Salaries and Wages Payable Interest Payable Common Stock Retained Earnings $ 40 5,000 2,500 800 1,200 50 10,000 2,360 $21,950 $21,950