In: Accounting
INSTRUCTIONS
10. Prepare a post-closing trial balance as of April 30, 2020.
Janet Stevens began her tax business, Stevens Tax Service, on February 1, 2020. Below is the Chart of Accounts for the company:
Acct # Account Title
11 Cash
12 Accounts receivable
14 Supplies
15 Prepaid Rent
16 Prepaid Insurance
18 Office Equipment
19 Accumulated Depreciation
21 Accounts Payable
23 Unearned Fees
31 Janet Stevens, Capital
32 Janet Stevens, Drawing
41 Fees Earned
51 Salary Expense
52 Rent Expense
53 Supplies Expense
54 Depreciation Expense
55 Insurance Expense
59 Miscellaneous Expense
After closing the books at the end of March, Stevens Tax Service had the following post-closing trial balance:
Stevens Tax Service
Post-Closing Trial Balance
March 31, 2020
Acct # Account Title Debit Credit
11 Cash 12,800
12 Accounts Receivable 9,750
14 Supplies 725
15 Prepaid Rent 5,000
16 Prepaid Insurance 2,250
18 Office Equipment 10,500
19 Accumulated Depreciation 700
21 Accounts Payable 1,510
23 Unearned Fees 1,800
31 Janet Stevens, Capital 37,015
Totals 41,025 41,025
During the month of April, 2020, Stevens Tax Service entered into the following transactions:
Apr. 3. Received cash from clients as advance payments for services to be provided and recorded it as unearned fees, $4,500.
5. Received cash from clients on account, $5,550.
8. Paid cash for an online advertisement for $600.
10. Paid Office Depot on account, $1,000.
12. Recorded services provided on account for the period of April 1-15, $9,450.
14. Paid receptionist for two weeks’ salary $1,500.
15. Recorded cash from cash clients for fees earned during the period of April 1-15, $8,300.
16. Purchased office supplies on account, $1,500.
20. Paid telephone bill, $500.
21. Paid electricity bill, $720.
25. Recorded cash received from clients on account, $6,200.
28. Paid receptionist for two weeks’ pay, $1,500.
30. Recorded cash from cash clients for fees earned for the period March 16-30, $8,900.
30. Recorded services on account for February 16-30, $10,600.
30. Janet withdrew $9,000 for personal use.