Question

Prepare a post closing trial balance.  

Answer 1

Post-closing trial balance

After passing all the journal entries and the closing entries of the permanent accounts and then further posting them to each of the respective accounts, a post-closing trial balance is prepared, consisting of a list of all the permanent funds. A post-closing trial balance serves as evidence to prove that the balance of the permanent accounts is equal.

Prepare a correct post-closing trial balance.

S Service Company
Post-Closing Trial Balance
On July 31, 2018
Account Title	Balance
	Debit ($)	Credit ($)
Cash	41,100
Accounts Receivable	317,400
Supplies	5,000
Equipment	162,750
Accumulated Depreciation—Building		73,300
Accounts Payable		82,500
Salaries Payable		5,500
Unearned Rent		12,000
Common Stock		65,000
Retained earnings		287,950
Total	$526,250	$526,250

Table (1)

According to the post-closing trial balance, the temporary accounts like revenues, expenses are closed. Then those accounts are transferred to a permanent fund to prepare the post-closing trial balance.

Following are the types of accounts are listed on the post-closing trial balance.

• • Asset account (Cash, Accounts Receivable, Office Supplies, and Accumulated Depreciation).
• • Liabilities account (Unearned revenue, Accounts Payable, Salaries Payable).
• • Stockholders’ Equity account (Common Stock and Retained Earnings).

Answers can be found in the Explanation section.