Question

Income Statement
For the Year Ended December 31, 2014
	Revenue:
	Sales		$ 792,845
	Cost of Goods Sold	$   275,000
	Gross Profit		$ 517,845
	Operating Expenses:
	Depreciation Expense	$     35,159
	Insurance Expense	$     82,000
	Office Expense	$     21,700
	Advertising Expense	$       8,400
	Utilities Expense	$     31,000
	Wage Expense	$     80,350
	Bad Debt Expense	$     25,000
	Pension Expense	$     40,000
	Income from Operations:		$ 194,236
	Other Revenue:
	Rent Revenue		$ 12,000
	Interest Revenue		$ 19,561
	Other Expenses:
	Unrealized Holding G/L	$      (8,000)
	Loss on Impairment	$    (10,000)
	Interest Expense	$    (47,593)
	Total Expenses:	$   (65,593)
	Net Income Before Income Taxes		$ 160,204
	Income Tax Expense	$     64,081
	Net Income		$ 96,122

Statement of Retained Earnings
For the Year Ended December 31, 2014
Retained earnings, Beginning		$                     -
Add: Net Income		$             96,122
Subtract: Dividends		$            (41,000)
Retained earnings, Ending		$             55,122

Balance Sheet
For the Year Ended December 31, 2014
Assets
Current Assets:
Cash			$        648,729
Accounts receivable			$        190,300
Prepaid insurance			$          17,400
Inventory			$          75,000
Short-Term investments			$        167,000
Fair Value Adjustment		$          (8,000)
Allowance for doubtful accounts		$         (25,000)
Total Current Assets			$     1,065,429
Long-Term Assets
Patent			$          27,500
Land			$          75,000
Building			$        150,000
Accumulated depreciation: building		$          (5,400)
Equipment			$          50,000
Accumulated depreciation: equipment		$         (22,000)
Leased Vehicle			$          43,796
Accumulated Deprection- Vehicle		$          (8,759)
Pension Asset/Liability			$          17,000
LT (Debt) investments (HTM			$        181,385
Total Long-Term Assets			$        508,522
Total Assets:			$      1,573,951
Liabilities
Current Liabilities
Accounts payable			$          65,340
Wages Payable			$          12,750
Income taxes payable			$          64,081
Interest Payable			$          52,504
Notes payable			$        235,000
Deferred Compensation		$         (10,000)
Unearned rent revenue			$          24,000
Total Current:			$        443,676
Long-Term Liabilities:
Leased Liability			$          33,293
Bonds Payable			$        800,000
Premium on Bonds Payable			$          56,860
Total Long-Term Liabilities			$        890,153
Total Liabilities:			$     1,333,828
Capital
Common Stock			$        109,000
Additional Paid in caiptal			$          21,000
PIC In Excess of Par-Common Stock			$          35,000
Retained earnings			$          55,122
Treasury stock			$                  -
Accumulated other comprehensive income:
Pension gain/loss OCI			$          20,000
Total Capital:			$        240,122
Total Liabilities and Capital			$      1,573,951

Please make Post Closing Trial Balance Statement

Answer 1

Post closing trial balance will be as follow :-

Accounts title	debit	credit
Cash	648729
Accounts receivable	190300
Prepaid insurance	17400
Invemtory	75000
ST inventment	167000
Fair value adjustment		8000
Allowance for doubtful debt		25000
Patent	27500
Land	75000
Building	150000
Accumulated dep. - building		5400
Equipment	50000
Accumulated dep. - equipment		22000
Leasehold vehicle	43796
Accumulated dep.-vehicle		8759
Pension asset	17000
LT investment	181385
Accounts payable		65340
Wages payable		12750
Income tax payable		64081
Interest payable		52504
Notes payable		235000
Deferred compensation	10000
Unearned rent revenue		24000
Lease liability		33293
Bonds payable		800000
Pemuim on bonds payable		56860
Common stock		109000
Additional paid in capital		21000
PIC in excess of par common stock		35000
Retained earning		55122
Pension gain		20000
	1653110	1653110