Question

McBride Company has the following opening account balances in its general ledger on January 1.

General Ledger
Acct #	Account Title	Jan. 1 Balance
101	Cash	35,970
112	Accounts Receivable	14,100
115	Notes Receivable	38,680
120	Inventory	21,100
126	Supplies	1,150
130	Prepaid Insurance	1,900
157	Equipment	6,640
158	Accumulated Depreciation-Equip.	1,524
201	Accounts Payable	34,300
301	Owner's Capital	83,716

In addition, the following transactions have not been journalized for January 2014.

Jan.3	Sell merchandise on account to B. Berg $3,000, invoice no. 510,and J. Lutz $1,800, invoice no. 511.
Jan.5	Purchase merchandise on account from S. Colt $3,000 and D. Kahn $2,510.
Jan.7	Receive checks for $4,870 from S. Andrus and $2,030 from B. Boxberger.
Jan.8	Pay freight on merchandise purchased $200.
Jan.9	Send checks to S. Otero for $8,950 and D. Baroni for $9,850.
Jan.9	Issue credit of $300 to J. Lutz for merchandise returned.
Jan.10	Summary cash sales total $15,700.
Jan.11	Sell merchandise on account to R. Kotsay for $1,830, invoice no. 512, and to S. Andrus $1,100, invoice no. 513.
Jan.12	Pay rent of $860 for January.
Jan.13	Receive payment in full from B. Berg and J. Lutz.
Jan.15	Withdraw $1,040 cash by I. McBride for personal use.
Jan.16	Purchase merchandise on account from D. Baroni for $15,200, from S. Otero for $12,700, and from S.Colt for $1,360.
Jan.17	Pay $420 cash for office supplies.
Jan.18	Return $210 of merchandise to S. Otero and receive credit.
Jan.20	Summary cash sales total $17,900.
Jan.21	Issue $15,500 note to R. Rasmus in payment of balance due.
Jan.21	Receive payment in full from S. Andrus.
Jan.22	Sell merchandise on account to B. Berg for $3,890, invoice no. 514, and to R. Kotsay for $1,110, invoice no 515.
Jan.23	Send checks to D. Baroni and S. Otero in full payment.
Jan.25	Sell merchandise on account to B. Boxberger for $3,800, invoice no. 516, and to J, Lutz fir $6,310, invoice no. 517.
Jan.27	Purchase merchandise on account from D. Baroni for $12,500, from D. Kahn for $1,240, and from S. Colt for $2,700.
Jan.28	Pay $380 cash for office supplies.
Jan.31	Summary cash sales total $23,500.
Jan.31	Pay sales salaries of $4,390 and office salaries of $3,470.

Instructions

1 Prepare the income statement, statement of owner's equity and balance sheet for McBride Co.

2 Prepare closing entries and post-closing trial balance.

I have the trial balance, pls answer these two questions

2.

After the journal entry (and ledger posting), the next step is to prepare the trial balance to check if all the entries have been made correctly. If so, the credit side will be equal to the debit side.

Adjusted trial Balance

Description	Dr	Cr
Purchases	$51,210
Cash	$28420
Accounts receivable	$25,240
Notes receivable	$38,680
Inventory	$21,100
Supplies office	1,950
Prepaid insurance	$1900
Equipment	6,640
Accumulated depreciation		1,524
Accounts payable		$4,610
Owners capital		$82,676
Freight in	200
Sales return	$300
Purchase return		$210
Rent expense	$860
Notes payable		$15,500
Salary expense	$7,860
Sales revenue		$79,940
Total	$184,360	$184,360

Answer 1

JOURNAL ENTRIES

Date	Particulars	L.F.	DR.	CR.
Jan 3	A/c Receivable A/c (3000+1800)	Dr	$4800
	To Sales Revenue A/c			$4800
	(Being sales booked)
Jan 5	Purchases A/c (3000+2510)	Dr	$5510
	To Account Payable A/c			$5510
	(Being purchases booked)
Jan 7	Cash A/c (4870+2030)	Dr	$6900
	To Accounts Receivable A/c			$6900
	(Being amount received)
Jan 8	Freight - In A/c	Dr	$200
	To Cash A/c			$200
	(Being freight paid)
Jan 9	Accounts Payable A/c (8950+9850)	Dr	$18,800
	To Cash A/c			$18,800
	(being amount paid)
Jan 9	Sales Return A/c	Dr	$300
	To Accounts Receivable			$300
	(being merchandise return booked)
Jan 10	Cash A/c	Dr	$15,700
	To Sales Revenue A/c			$15,700
	(Being cash sales booked)
Jan 11	Accounts Receivable A/c (1830+1100)	Dr	$2,930
	To Sales Revenue A/c			$2,930
	(Being sales booked)
Jan 12	Rent Expense A/c	Dr	$860
	To Cash A/c			$860
	(Being rent paid)
Jan 13	Cash A/c	Dr	$4,500
	To Account Receivable A/c ($4800 - $300 sales return)			$4,500
	(Being final amount received)
Jan 15	Drawings - owner's Capital A/c	Dr	$1,040
	To Cash A/c			$1,040
	(Being amount withdrawn for personal use)
Jan 16	Purchases A/c (15200+12700+1360)	Dr	$29,260
	To Accounts Payable A/c			$29,260
	(Being purchases booked)
Jan 17	Office Supplies A/c	Dr	$420
	To Cash A/c			$420
	(Being amount paid for office supplies)
Jan 18	Accounts Payable A/c	Dr	$2100
	To Purchase Return A/c			$210
	(Being purchase return booked)
Jan 20	Cash A/c	Dr	$17,900
	To Sales Revenue A/c			$17,900
	(being cash sales booked)
Jan 21	Accounts Payable A/c	Dr	$15,500
	To Notes Payable A/c			$15,500
	(Being account settled)
Jan 22	Accounts Receivable A/c (3890+1110)	Dr	$5,000
	To Sales Revenue A/c			$5,000
	(Being sales booked)
Jan 23	Accounts Payable A/c (25050+21440)	Dr	$46,490
	To Cash A/c			$46,490
	(Being account settled)
Jan 25	Accounts Receivable A/c (3800+6310)	Dr	$10,110
	To Sales Revenue A/c			$10,110
	(Being sales booked)
Jan 27	Purchases A/c (12500+1240+2700)	Dr	$16,440
	To Accounts Payable A/c			$16,440
	(Being purchases booked)
Jan 28	Office Supplies A/c	Dr	$380
	To Cash			$380
	(Being amount paid for office supplies)
Jan 31	Cash A/c	Dr	$23,500
	To Sales Revenue			$23,500
	(Being sales booked)
Jan 31	Salary Expense A/c (4390+3470)	Dr	$7860
	To Cash A/c			$7860
	(Being salary paid)

ADJUSTED TRIAL BALANCE

Particulars	Dr. ($)	Cr. ($)
Purchases	$51,210
Cash	$28,420
Accounts receivable	$25,240
Notes receivable	$38,680
Inventory	$21,100
Supplies office	$1,950
Prepaid insurance	$1,900
Equipment	$6,640
Accumulated depreciation		$1,524
Accounts payable		$4,610
Owners capital		$82,676
Freight in	$200
Sales return	$300
Purchase return		$210
Rent expense	$860
Notes payable		$15,500
Salary expense	$7,860
Sales revenue		$79,940
Total	$184,360	$184,360