The adjusted trial balance for Settles Tennis Club at the end of the company's fiscal year appears shown below.

Required

1. Prepare T accounts and enter the balances for B. Settles, Capital; B. Settles, Withdrawals; Income Summary, and all revenue and expense accounts.

2. Enter the four required closing entries in the T accounts, labeling the components a, b, c, and d, as appropriate.

3. Prepare an income statement, a statement of retained earnings, and a balance sheet for Settles Tennis Club.

4. Explain why it is necessary to make closing entries at the end of an accounting period.

Transcribed Image Text:

Settles Tennls Club Adjusted Trial Balance June 30, 2011 26,200 Accumulated Depreciation-Building 156,000 Accumulated Depreciation-Equipment Unearned Revenue-Locker Fees Revenue from Locker Fees Depreciation Expense-Building Depreciation Expense-Equipment 6,900 1,576,750 $1,576.750