Question

The December 31, 2019, adjusted trial balance of Business Solutions (reflecting its transactions from October through December of 2019) follows.
  

No	Account Title	Debit			Credit
101	Cash	$	51,928
106	Accounts receivable		4,468
126	Computer supplies		630
128	Prepaid insurance		1,440
131	Prepaid rent		795
163	Office equipment		8,200
164	Accumulated depreciation—Office equipment				$	410
167	Computer equipment		21,200
168	Accumulated depreciation—Computer equipment					1,325
201	Accounts payable					1,500
210	Wages payable					460
236	Unearned computer services revenue					1,800
301	S. Rey, Capital					65,000
302	S. Rey, Withdrawals		7,200
403	Computer services revenue					41,799
612	Depreciation expense—Office equipment		410
613	Depreciation expense—Computer equipment		1,325
623	Wages expense		3,550
637	Insurance expense		480
640	Rent expense		2,385
652	Computer supplies expense		3,415
655	Advertising expense		2,633
676	Mileage expense		810
677	Miscellaneous expenses		230
684	Repairs expense—Computer		1,195
901	Income summary					0
	Totals	$	112,294		$	112,294

Required:
1. Record the closing entries as of December 31, 2019.
2. Prepare a post-closing trial balance as of December 31, 2019.

Answer 1

Requirement:1

No.	Account title and explanation	Debit	Credit
Dec. 31	Computer services revenue	$          41,799
	Income Summary		$    41,799
	(To close revenue account )
Dec. 31	Income Summary	$          16,433
	Depreciation expense—Office equipment		410
	Depreciation expense—Computer equipment		1,325
	Wages expense		3,550
	Insurance expense		480
	Rent expense		2,385
	Computer supplies expense		3,415
	Advertising expense		2,633
	Mileage expense		810
	Miscellaneous expenses		230
	Repairs expense—Computer		1,195
	(To close Expense account )
Dec. 31	Income Summary ( $41,799 - $16,433)	$          25,366
	S. Rey, Capital		$    25,366
	(To transfer net income to capital )
Dec. 31	S. Rey, Capital	$            7,200
	S. Rey, Withdrawals		$      7,200
	(To close drawings to capital)

Requirement:2

BUSINESS SOLUTIONS
Post Closing Trial Balance
At December 31, 2019
Account Title	Debit	Credit
Cash	$   51,928
Accounts receivable	$     4,468
Computer supplies	$        630
Prepaid insurance	$     1,440
Prepaid rent	$        795
Office equipment	$     8,200
Accumulated depreciation—Office equipment		$        410
Computer equipment	$   21,200
Accumulated depreciation—Computer equipment		$     1,325
Accounts payable		$     1,500
Wages payable		$        460
Unearned computer services revenue		$     1,800
S. Rey, Capital [65000+25366-7200]		$   83,166
Totals	$   88,661	$   88,661