The Dec 31 2011 adjusted trial balance of business solutions(reflecting its tran

Question

The Dec 31 2011 adjusted trial balance of business solutions(reflecting its transactions from october through december of 2011 Follows All Debits Cast 48,372 Accounts Receivable 5668 Computer supplies 580 Prepaid Insurance 1,665 Prepaid rent 825 Office equipment 8000 Computer equipment 20,000 S Rey withdrawls 7,100 Depreciation expense - Office equipment 400 Depreciation expense Computer equip 1250 Wages expense 3,875 Insurane expesne 555 Rent expense 2475 Computer supplies expense 3065 advertising expense 2753 Mileage expense 896 Miscellaneous expense 250 Repairs expense computer 1305 Inceome summary 0 All credits now Accumulated depreciation office equipment 400 Accumulated depreciation computer equipment 1250 Accounts payable 1100 Wages payable 500 Unearned computer sercices revenue 1500 S Rey Capital 73,000 Totals Debit 109,034 Total Credit 109,034 Record and post the necessary closing entries for business solutions Prepare a post closing trial balance as of December 31 2011 Can anybody help me with this problem ??/

Explanation / Answer

The general ledger reflects a permanent summary of all your supporting journals, such as the sales and cash receipts journal and the cash disbursements journal. Closing your books and maintaining your general ledger should be one of your top priorities. It terms of your company's books, it all boils down to the general ledger. This accounting-must functions as a permanent summary of all your supporting journals, such as the sales and cash receipts journal and the cash disbursements journal. In addition, your financial statements are built from the general ledger. Tools for Keeping an Accurate General Ledger For each account title shown on your sales and cash receipts journal columns and your cash disbursements journal columns, there is a general ledger account. There are also separate general ledger accounts for miscellaneous items that don't have their own column in the journals, but are entered in a "miscellaneous" column. For example, Cash, Accounts Receivable, Accounts Payable, Sales, Purchases, Telephone Expense and Owner's Equity are all examples of general ledger accounts. Your accounting software will reserve space in the general ledger for each general ledger account. The individual entries in the general ledger are always from the total columns of your supporting journals. When all journal entries are posted, you can arrive at the ending balance for each account. The sum of all general ledger debit balances should always equal the sum of all general ledger credit balances. Suggested General Ledger Accounts We've provided a list of common general ledger accounts many businesses find useful. Depending on your type of business, you will use many, but probably not all, of these account names. When you set up your accounting software, you'll want to include all applicable accounts. On your financial statements, they should generally be placed in the order shown. Balance Sheet Accounts Assets: petty cash (if you maintain a petty cash fund) cash in checking (a separate ledger account for each bank account) cash in savings accounts receivable reserve for bad debts inventory prepaid expenses office supplies (if you maintain a significant amount of office supply inventory) utility deposits notes receivable investments organization expenses vehicles accumulated depreciation — vehicles furniture and fixtures accumulated depreciation — furniture and fixtures equipment accumulated depreciation — equipment buildings accumulated depreciation — buildings land goodwill Liabilities: accounts payable sales tax payable federal withholding taxes payable FICA taxes payable state withholding taxes payable unemployment taxes payable accrued wages unearned revenue accrued income taxes note payable Capital Accounts: owner's equity owner's drawing account common stock additional paid-in capital preferred stock retained earnings

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