In: Accounting

# Prepare a post closing trial balance

Prepare a post closing trial balance.

## Solutions

##### Expert Solution

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.

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