closing entries, 304 chapter 5 multi-step income statement, journalizi trial bal

Question

closing entries, 304 chapter 5 multi-step income statement, journalizi trial balance Learning Objectives 4,s P5-36A Preparing tng a pos 1. Operating income $67,900 The ndjusted crial balance of Rachael Rey Music Company at June 30, 2018 RACHAEL REY MUSIC COMPANY Adjusted Trial Balance June 30, 2018 Balance Debit Credit 4,000 38,400 18,100 300 39,900 Account Title Cash Accounts Receivable Merchandise Inventory Office Supplies Furniture Accumulated Depreciation-Furniture Accounts Payable Salaries Payable Unearned Revenue $8,200 13,800 850 7,500 17,000 27,350 Notes Payable, long-term Rey, Capital Rey, Withdrawals 40,000 Sales Revenue Cost of Goods Sold Selling Expense 184,000 85,500 18,600 12,000 1,900 Administrative Expense Interest Expense Total $258,700 258,700 Requirements 1. Prepare Rachael Rey's multi-step income statement for the year ended June 30, 2018. 2. Journalize Rachael Rey's closing entrics. 3. Prepare a post-closing trial balance as of June 30, 2018

Explanation / Answer

1) Multi-Step Income Statement Sales revenue 184,000 less cost of goods sold 85,500 Gross profit 98,500 less:Expenses Selling expense 18,600 Administrative expense 12,000 total operating expense 30,600 net operating income 67,900 other income and expenses interest expense 1,900 net income 66,000 2) Accouting titles & Explanations Debit Credit sales revenue 184,000 income summary 184,000 income summary 118,000 cost of goods sold 85,500 selling expense 18,600 Administrative expense h 12,000 interest expense 1,900 income summary 66,000 Rey Capital 66,000 Rey capital 40,000 Rey Withdrwals 40,000 post closing trial balance Account title Debit Credit cash 4,000 accounts receivable 38,400 merchandise inventory 18,100 office supplies 300 furniture 39,900 Accumulated depreciation-furniture 8,200 accounts payable 13,800 salaries payable 850 unearned revenue 7,500 notes payable,long term 17,000 Rey,capital 53350 total 100,700 100700

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