Question

ElecBooks 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. Amounts in the list of accounts are rounded to the nearest thousand dollars. Assume the year ended on September 30, 2017.

Accounts Payable	$	221
Accounts Receivable		191
Accrued Liabilities		354
Accumulated Depreciation		300
Cash		307
Contributed Capital		151
Depreciation Expense		340
General and Administrative Expenses		357
Income Tax Expense		302
Interest Revenue		92
Long-Term Debt		196
Other Current Assets		71
Other Long-Lived Assets		461
Other Operating Expenses		197
Prepaid Expenses		94
Property and Equipment		2,142
Retained Earnings		1,445
Selling Expenses		2,605
Service Revenues		6,369
Short-Term Bank Loan		476
Store Operating Expenses		2,166
Supplies		546
Deferred Revenue		175

Required:
1-a. Prepare an adjusted trial balance at September 30, 2017. (Enter your an

2.Prepare the closing entry required at September 30, 2017. (Enter your answers in thousands. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
3.Prepare a post-closing trial balance at September 30, 2017. (Enter your answers in thousands.)

Answer 1

Req. 1

ELECBOOKS CORPORATION

Adjusted Trial Balance

At September 30, 2017

(in thousands)

Account Titles

Debit

Credit

Cash

$        307

Accounts Receivable

191

Supplies

546

Prepaid Expenses

94

Other Current Assets

71

Property and Equipment

2,142

Accumulated Depreciation

$    300

Other Long-lived Assets

461

Accounts Payable

221

Accrued Liabilities

354

Unearned Revenue

175

Short-term Bank Loan

476

Long-term Debt

196

Contributed Capital

151

Retained Earnings

1,445

Service Revenues

6,369

Interest Revenue

92

Selling Expenses

2,605

Store Operating Expenses

2,166

Other Operating Expenses

197

Depreciation Expense

340

General and Administrative Expenses

357

Income Tax Expense

302

     Totals

$ 9,779

$    9,779

No.  The amount to be reported for retained earnings on the balance sheet would be the amount reported on the statement of retained earnings. The $1,445 in the adjusted trial balance does not yet include the net income generated by Elecbooks for the year ended September 30, 2017.

Req. 2

dr  Service Revenues (-R).........................................

6,369

dr  Interest Revenue (-R)..........................................

92

cr Selling Expenses (-E) ...........................................

2,605

cr  Store Operating Expenses (-E) ...........................

2,166

cr  Other Operating Expenses (-E) ..........................

197

cr Depreciation Expense (-E) ...................................

340

cr  General and Administrative Expenses(-E)

357

cr Income Tax Expense (-E) ....................................

302

cr  Retained Earnings (+SE) .....................................

494

Req. 3

ELECBOOKS CORPORATION

Post-closing Trial Balance

At September 30, 2017

(in thousands)

Account Titles

Debit

Credit

Cash

$     307

Accounts Receivable

191

Supplies

546

Prepaid Expenses

94

Other Current Assets

71

Property and Equipment

2,142

Accumulated Depreciation

$    300

Other Long-lived Assets

461

Accounts Payable

221

Accrued Liabilities

354

Unearned Revenue

175

Short-term Bank Loan

476

Long-term Debt

196

Contributed Capital

151

Retained Earnings

1,939

Service Revenues

0

Interest Revenue

0

Selling Expenses

0

Store Operating Expenses

0

Other Operating Expenses

0

Depreciation Expense

0

General and Administrative Expenses

0

Income Tax Expense

0

     Totals

$3,812

$ 3,812