DANIELS CONSULTING Adjusted Trial Balance - Worksheet (Before Clsoing Entries-Us
ID: 2587976 • Letter: D
Question
DANIELS CONSULTING Adjusted Trial Balance - Worksheet (Before Clsoing Entries-Use for finacial statements) Adjusted Trial Balance 4 Account Names Debit Credit Cash Accounts Receivable Allowance for Bad Debts $ 689,323 1,100 8 312 9Office Supplies 10 Equipment 11 Software Inventory 12 Prepaid Rent 13 Accumulated Depreciation- Equipment 14 15 Accumulated Depreciation-Furniture 16 Land 17 Short Term Investment- T 15 7,200 300 840 Furniture 6,000 750 271,485 4,500 Trading 18VAdjustment Trading 1,500 1,010 900 19 Accounts Payable 20 Unearned Revenue 21 22 Long-term note payable 23 Bonds Payable 24 Discount on Bonds Payable 25Inerest Payable Salaries Payable 303,970 500,000 48,930 18,532 Adjusted Trial BalanceExplanation / Answer
In accounting, we often refer to the process of closing as closing the books. Only revenue, expense, and dividend accounts are closed—not asset, liability, Common Stock, or Retained Earnings accounts. The four basic steps in the closing process are:
Now the entries for closing the books of accounts will be:
1. Sales Revenue a/c Dr. $ 102,915
Service Revenue a/c Dr. $ 34,100
Interest Revenue a/c Dr. $ 275
To Income Summary a/c $ 137,290
2. Income Summary a/c Dr. $ 137,290
To COGS a/c $ 56,610
To Rent Expenses a/c $ 27,200
To Utilities Expenses a/c $ 4,960
To Supplies Expenses a/c $ 455
To Salaries Expenses a/c $ 11,275
To Interest Expenses a/c $ 19,121
To Bad Debt Expenses a/c $ 113
To Depreciation Expenses a/c - Equipment $ 780
To Depreciation Expenses a/c - Furniture $ 700
To Retained Earnings a/c $ 16,076
3. Retained Earnings a/c Dr. $ 16,076
To Dividend a/c $ 16,076
Additional Entries if you require these also:
1. Allowance for Bad Debts a/c Dr. $ 312
To Account Receivables a/c $ 312
2. Cash a/c Dr. $ 451,070
Discount on Bonds Payable a/c Dr. $ 48,930
To Bonds Payable a/c $ 500,000
3. Trading Securities a/c Dr. $ 3,000
To Unrealied Gain on Trading Securities ($ 4,500-$ 1,500) $ 3,000
4. Long Term Notes Payable a/c Dr. $ 303,970
Interest Expense a/c Dr. $ 18,532
To Cash a/c $ 322,502
5. Cash a/c Dr. $ 900
To Unearned Revenue a/c $ 900
6. Cash a/c Dr. $ 49,452
To Common Stock a/c $ 36,000
To Addition paid-in-capital $ 13,452
7. Cash a/c Dr. $ 137,500
To Preferred Stock a/c $ 125,000
To Addition paid-in-capital $ 12,500
Thank You.
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