Required information [The following information applies to the questions display

Question

Required information

[The following information applies to the questions displayed below.]

Edwards Corporation operates hair salons under various brand names. The following is a simplified list of accounts and amounts (in millions) reported in the company’s accounts for the year ended June 30, 2016.

Prepare a post-closing trial balance at June 30, 2016. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Accounts Payable $ 76 Accounts Receivable 80 Accumulated Amortization 16 Accumulated Depreciation 217 Amortization Expense 8 Cash 155 Common Stock 260 Depreciation Expense 71 Equipment 510 Income Tax Expense 8 Interest Expense 16 Inventories 163 Notes Payable (long-term) 162 Office Expenses 119 Prepaid Rent 53 Rent Expense 210 Retained Earnings 476 Salaries and Wages Expense 620 Salaries and Wages Payable 145 Service Revenue 1,156 Software 376 Supplies Expense 119

Explanation / Answer

Income and expenses are closed to retained earnings.

Post closing balance in retained earnings is:

Post closing TB is

Net income: Service Revenue 1,156 Amortization Expense 8 Depreciation Expense 71 Income Tax Expense 8 Interest Expense 16 Office Expenses 119 Rent Expense 210 Salaries and Wages Expense 620 Supplies Expense 119 Total expenses 1171 Net loss 15 Retained earnings opening 476 Less net loss 15 Closing balance 461

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.