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Homework answers / question archive / prepare the Post-closing trial balance based on the Adjusted Trial Balance provided in Sheet “Adj
prepare the Post-closing trial balance based on the Adjusted Trial Balance provided in Sheet “Adj. TB” and your answer in Q1.
Make sure that you
• List account names, then place the $ amount on the correct side (debit or credit)
• Your total debits should equal your total credits.Pet's Choice Adjusted Trial Balance, 3/31/2018 Cash AR Inventory Prepaid Insurance Land Building Accumulated Depreciation A/P Interest payable Income tax payable Salaries Payable Utilities Payable Notes Payable Common Stock Additional Paid-in Sales Revenue COGS Income tax expense Insurance expense Depreciation expense Inerest expense Salaries expense Utilities expense Cash dividend Total 1,234,050 36,000 80,000 1,575 1,000,000 500,000 5000 12500 9600 7,200 1700 1,000,000 200,000 1,350,000 562,000 170000 9600 525 5,000 12,500 33300 5450 60000 3,148,000 3,148,000
Close Revenue Sales Revenue Cr. Dr. Correct 562,000 Correct Income Summary Correct 562000 Correct Close Expenses Dr. Correct 236,375 Correct Income Summary Cr Correct Correct Correct Correct Correct Correct Correct 70,000 Correct 12,500 Correct 5,000 Correct 525 Correct 33,300 Correct 5,450 Correct 9,600 Correct COGS Interest expense Cr Cr. Cr Cr Insurance expense Salaries expense Utilities expense Income tax expense Close Income Summary Dr Correct 325,625 Correct Income Summary Cr Retained Earnings Correct 325625 Correct Close Dividends Dr Retained Earnings Correct 60,000 Correct Cr Cash dividend Correct 60000 Correct
Pet's Choice Post-Closing Trial Balance, 3/31/2018 Dr Cr Account name Total
Post-Closing Trail balance is a list of accounts (permanent accounts) that still have balances after the closing entries have made. It contains no revenues, expenses, gain, and loss accounts since these accounts have already been closed and moved into the retained earnings account as a part of the closing process.
.
| Pet's Choice | ||
| Post - Closing Trial Balance | ||
| 3/31/2018 | ||
| Account Name | Debit | Credit |
| Cash | $1,234,050 | |
| Accounts Receivable (A/R) | $36,000 | |
| Inventory | $80,000 | |
| Prepaid Insurance | $1,575 | |
| Land | $1,000,000 | |
| Building | $500,000 | |
| Accumulated Depreciation | $5,000 | |
| Accounts Payable (A/P) | $0 | |
| Interest Payable | $12,500 | |
| Income tax payable | $9,600 | |
| Salaries payable | $7,200 | |
| Utilities payable | $1,700 | |
| Notes Payable - Long term | $1,000,000 | |
| Common stock | $200,000 | |
| Additional paid-in capital | $1,350,000 | |
| Retained Earnings [Refer working note 2] | $265,625 | |
| Total | $2,851,625 | $2,851,625 |
.
| Working Note 1 - Calculation of Net Profit/loss | ||
| Amount | Amount | |
| Sales revenue | $562,000 | |
| Expenses: | ||
| COGS | $170,000 | |
| Interest Expenses | $12,500 | |
| Depreciation Expenses | $5,000 | |
| Insurance Expenses | $525 | |
| Salaries Expenses | $33,300 | |
| Utilities Expense | $5,450 | |
| Income tax Expense | $9,600 | |
| Total Expenses | $236,375 | |
| Net Profit [Revenue - Expenses] | $325,625 | |
.
| Working Note 2 - Calculation of ending retained earnings balance | |
| Amount | |
| Beginning balance | $0 |
| Add: Net profit [refer working note 1] | $325,625 |
| Less: Dividends | $60,000 |
| Ending balance | $265,625 |
