Question

Use the spreadsheet and partially completed Income Summary Account shown.

Balloons and Baubbles

End-of-Period Spreadsheet

For the Year Ended December 31, 20-1

1	ACCOUNT TITLE	TRIAL BALANCE DEBIT	TRIAL BALANCE CREDIT	ADJUSTMENTS DEBIT	ADJUSTMENTS CREDIT	ADJUSTED TRIAL BALANCE DEBIT	ADJUSTED TRIAL BALANCE CREDIT
2	Cash	18,000.00				18,000.00
3	Accounts Receivable	12,600.00				12,600.00
4	Merchandise Inventory	67,500.00		(b) 76,500.00	(a) 67,500.00	76,500.00
5	Estimated Returns Inventory	2,880.00		(e) 3,870.00	(d) 2,880.00	3,870.00
6	Supplies	7,200.00			(f) 4,230.00	2,970.00
7	Prepaid Insurance	4,860.00			(g) 1,440.00	3,420.00
8	Land	117,000.00				117,000.00
9	Building	225,000.00				225,000.00
10	Accumulated Depreciation—Building		90,000.00		(h) 11,250.00		101,250.00
11	Store Equipment	90,000.00				90,000.00
12	Accumulated Depreciation—Store Equipment		36,000.00		(i) 4,500.00		40,500.00
13	Accounts Payable		8,640.00				8,640.00
14	Customer Refunds Payable		3,150.00		(c) 1,980.00		5,130.00
15	Wages Payable				(j) 3,150.00		3,150.00
16	Sales Tax Payable		5,310.00				5,310.00
17	Unearned Repair Revenue		8,010.00	(k) 3,960.00			4,050.00
18	L. Marlow, Capital		255,879.00				255,879.00
19	L. Marlow, Drawing	23,400.00				23,400.00
20	Income Summary			(a) 67,500.00	(b) 76,500.00	67,500.00	76,500.00
21				(d) 2,880.00	(e) 3,870.00	2,880.00	3,870.00
22	Sales		472,626.00				472,626.00
23	Sales Returns and Allowances	13,050.00		(c) 1,980.00		15,030.00
24	Rent Revenue				(k) 3,960.00		3,960.00
25	Purchases	112,500.00				112,500.00
26	Purchases Returns and Allowances		1,260.00				1,260.00
27	Purchases Discounts		1,620.00				1,620.00
28	Freight-In	1,890.00				1,890.00
29	Wages Expense	112,500.00		(j) 3,150.00		115,650.00
30	Advertising Expense	11,700.00				11,700.00
31	Supplies Expense			(f) 4,230.00		4,230.00
32	Phone Expense	1,215.00				1,215.00
33	Utilities Expense	7,200.00				7,200.00
34	Insurance Expense			(g) 1,440.00		1,440.00
35	Depreciation Expense—Building			(h) 11,250.00		11,250.00
36	Depreciation Expense—Store Equipment			(i) 4,500.00		4,500.00
37	Rent Expense	54,000.00				54,000.00
38		$882,495.00	$882,495.00	$181,260.00	$181,260.00	$983,745.00	$983,745.00
39						410,985.00	559,836.00
40	Net Income					$148,851.00

GENERAL LEDGER

Account: Income Summary313Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1	Dec. 31		J1	67,500.00		67,500.00
2	31		J1		76,500.00		9,000.00
3	31		J1	2,880.00			6,120.00
4	31		J1		3,870.00		9,990.00

Required:

1.	Prepare closing entries for Balloons and Baubbles in a general journal.
2.	Prepare a post-closing trial balance.

Prepare a post-closing trial balance.

How does grading work?

Balloons and Baubbles

POST-CLOSING TRIAL BALANCE

Score: 67/71

December 31, 20--

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	✔
2	Accounts Receivable	✔
3	Merchandise Inventory	✔
4	Estimated Returns Inventory	✔
5	Supplies	✔
6	Prepaid Insurance	✔
7	Land	✔
8	Building	✔
9	Accumulated Depreciation-Building		✔
10	Store Equipment	✔
11	Accumulated Depreciation-Store Equipment		✔
12	Accounts Payable		✔
13	Customer Refunds Payable		✔
14	Wages Payable		✔
15	Sales Tax Payable		✔
16	Unearned Repair Revenue		✔
17	L. Marlow, Capital
18	Totals	✔

Answer 1