Question

Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Assume the year ended on September 30, 2018.

Accounts Payable	$	591
Accounts Receivable		291
Accumulated Depreciation		891
Cash		291
Common Stock		191
Deferred Revenue		191
Depreciation Expense		291
Equipment		3,191
Income Tax Expense		291
Interest Revenue		91
Notes Payable (long-term)		191
Notes Payable (short-term)		491
Prepaid Rent		91
Rent Expense		391
Retained Earnings		1,491
Salaries and Wages Expense		2,191
Service Revenue		6,173
Supplies		491
Supplies Expense		191
Travel Expense		2,591

3. Prepare a post-closing trial balance at September 30, 2018.

Answer 1

Answer:

STAR BOOKS CORPORATION

Post-Closing Trial Balance

At September 30, 2018

Account Name	Debits	Credits
Cash	291
Accounts Receivable	291
Supplies	491
Prepaid Rent	91
Equipment	3,191
Accumulated Depreciation		891
Accounts Payable		591
Deferred Revenue		191
Notes Payable (Short-Term)		491
Notes Payable (Long-Term)		191
Common Stock		191
Retained Earnings (ref working note)		1,809
Service Revenue		-
Interest Revenue		-
Salaries and Wage Expense	-
Rent Expense	-
Depreciation Expense	-
Supplies Expense	-
Travel Expense	-
Income Tax Expense	-
Totals	$4,355	$4,355

Working Note

Retained Earnings before closing	$1,491
Add: Service Revenue	6,173
Add: Interest Revenue	91
Less: Salaries and Wage Expense	(2,191)
Less: Rent Expense	(391)
Less: Depreciation Expense	(291)
Less: Supplies Expense	(191)
Less: Travel Expense	(2,591)
Less: Income Tax Expense	(291)
Retained Earnings in post-closing TB	$1,809