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Prepare a post closing trial balance

Prepare a post closing trial balance.  

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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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