Why does the Capital on Post-closing Trial Balance increase? How to convert Journalize&Post the closing entries...

Why does the Capital on Post-closing Trial Balance increase? How to convert Journalize&Post the closing entries into Post-closing Trail Balance?

Solutions

Expert Solution

The balance of Capital will increase in post-closing Trial Balance due to either new issue of stock, or due to declaration of Stock Dividends or increase in retained earnings due to adding of current period's net income after deducting the dividends.

Transactions are prepared as Journal Entries with an equal amount of Debit and Credit for any two or more corresponding accounts with same affect. For example, Purchase of Equipment by Cash, Equipment account will be debited as and Cash is credited with same amount.

These journal entries are posted to respective ledger accounts based on the transactions. With the same example, Equipment account will increase with a debit balance and Cash account will decrease with a credit amount.

The closing balances of accounts respective accounts are shown with individual amounts on the Post Closing Trial Balance. For example, if the amount in the above example is $20,000 then Equipment is shown with $20,000 as an increase on the debit side of the post closing trial balance and Cash account is shown with $20,000 as a decrease on the credit side of the post-closing trial balance.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Exercise 4-6 Preparing closing entries and the post-closing trial balance LO2,3,4 CHECK FIGURE: Post-closing trial balance...

Exercise 4-6 Preparing closing entries and the post-closing trial balance LO2,3,4 CHECK FIGURE: Post-closing trial balance columns = $51,300 The adjusted trial balance at April 30,2017 for Willard Co. follows Debit Credit 101 Cash 3,600 106 Account receivable 8,500 153 Trucks 26,000 154 Accumulated depreciation, trucks 8,250 193 Franchise 13,200 201 Accounts Payable 9,600 209 Salaries Payable 3,200 233 Unearned Revenue 1,300 301 Sid Willard, capital 29,100 302 Sid Willard, withdrawals. 9,600 401 Plumbing Revenue 42,050 611 Depreciation Expense, Trucks...

The post-closing trial balance differs from the adjusted trial balance in that it does not

The post-closing trial balance differs from the adjusted trial balance in that it does not include income statement accounts take into account adjusting entries take into account closing entries include balance sheet accounts

Post-Closing Trial Balance An accountant prepared the following post-closing trial balance: Security Services Co. Post-Closing Trial...

Post-Closing Trial Balance An accountant prepared the following post-closing trial balance: Security Services Co. Post-Closing Trial Balance July 31, 2018 Debit Balances Credit Balances Cash 41,100 Accounts Receivable 317,400 Supplies 5,000 Equipment 162,750 Accumulated Depreciation - Equipment 73,300 Accounts Payable 82,500 Salaries Payable 5,500 Unearned Rent 12,000 Common Stock 65,000 Retained Earnings 287,950 879,250 173,250 Prepare a corrected post-closing trial balance. Assume that all accounts have normal balances and that the amounts shown are correct. If an amount box does...

Closing Entries and Post-Closing Trial Balance Refer to the work sheet below for Megaffin’s Repairs to...

Closing Entries and Post-Closing Trial Balance Refer to the work sheet below for Megaffin’s Repairs to complete this problem. Megaffin's Repairs Work Sheet For Month Ended January 31, 20-- Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 3,675 3,675 3,675 Accounts Receivable 1,452 1,452 1,452 Supplies 695 296 399 399 Prepaid Insurance 899 220 679 679 Delivery Equipment 3,230 3,230 3,230 Accumulated Depreciation - Delivery...

I just need the closing entries and post closing trial balance for this question. Henrietta’s Pine...

I just need the closing entries and post closing trial balance for this question. Henrietta’s Pine Bakery Background You are an Analyst for the professional service firm, FINACC LLP. Your firm specializes in providing a wide variety of internal business solutions for different clients. Given the outstanding feedback you received on your first engagement working for Big Spenders Inc., a Senior Manager in the Financial Advisory group requested your support on a compilation engagement. Additional Information Henrietta’s was established in...

Prepare a post closing trial balance

Prepare a post closing trial balance.

Prepare a post-closing trial balance.

Below is the closing entries for the year ended December 31, 2017 (b2) Prepare a post-closing trial balance. Crane Company Post-Closing Trial Balance Debit Credit Totals

Prepare a post closing trial balance indicating the balance of revenue, expenses and capital accounts.

Case Background A sole proprietor (the owner) has established a service business specializing in recruitment for businesses needing specialized Tool Industry staff. The trail balance at the end of the first three months of operations is provided below. Part of the service is to train people before they are placed with companies. The owner has asked, you, the accountant for HR, to prepare the answers to the questions below considering the notes provided. Trial Balance Accounts Debits Credits Cash 24,500...

Which of the following statements about the post-closing trial balance is correct? A) The post-closing trial...

Which of the following statements about the post-closing trial balance is correct? A) The post-closing trial balance is a report prepared before the adjustments and the financial statements to prove that debits equal credits. B) The post-closing trial balance will be distributed to investors and other stakeholders along with the financial statements. C) The post-closing trial balance is an internal report prepared at the end of the accounting cycle. D) The post-closing trial balance proves that all entries have been...

Need Post closing Trial balance 1. Analyze and journalize the August transactions of Bayou Computer Service,...

Need Post closing Trial balance 1. Analyze and journalize the August transactions of Bayou Computer Service, Inc. as they occur using the Company's Chart of Accounts. 2. Post the August transactions from the general journal to the general ledger using the correct posting procedure outlined in your textbook. 3. Prepare a trial balance on a ten-column work sheet. 4. Journalize and post Adjusting Entries and complete the worksheet. Adjustment information you received from your supervisor, the Chief Accountant, follows: A....

Subjects