Question

Question 1

The adjusted trial balance columns of the worksheet for Martinez Company are as follows.

MARTINEZ COMPANY Worksheet (partial) For the Month Ended April 30, 2017
		Adjusted Trial Balance
Account Titles		Dr.		Cr.
Cash		8,850
Accounts Receivable		7,769
Prepaid Rent		2,478
Equipment		23,235
Accumulated Depreciation—Equip.				5,386
Notes Payable				5,842
Accounts Payable				4,831
Share Capital—Ordinary				24,145
Retained Earnings				4,224
Dividends		3,287
Service Revenue				12,464
Salaries and Wages Expense		9,695
Rent Expense		842
Depreciation Expense		736
Interest Expense		22
Interest Payable				22
Totals		56,914		56,914

Journalize the closing entries at April 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Post the closing entries. (Post entries in the order of journal entries posted in the previous part of the question.)

Prepare a post-closing trial balance at April 30.

Answer 1

journal entries

date	account titiles	debit	credit
Apr 30	income summary	$12,464
	service revenue		$12,464
	(To close revenue account)
Apr. 30	salaries and wages expense	$9,695
	rent expense	$842
	depreciation expense	$736
	interest expense	$22
	income summary		$11295
	(to close expense accounts)
Apr 30	income summary [12464-11295]	$1169
	retained earnings		$1169
Apr 30	retained earnings	$3287
	dividends		$3287
	(To close dividends)

Post the closing entries

Income summary
Apr 30	12,464	11295	Apr 30
		1169	Apr 30
	12,464	12,464
Retained earnings
Apr 30	3287	4224	Apr 30
		1169	Apr 30
end balance		2106

post closing trial balance

		Post closing Trial Balance
Account Titles		Dr.		Cr.
Cash		8,850
Accounts Receivable		7,769
Prepaid Rent		2,478
Equipment		23,235
Accumulated Depreciation—Equip.				5,386
Notes Payable				5,842
Accounts Payable				4,831
Share Capital—Ordinary				24,145
Retained Earnings				2,106
Interest payable				22
Total		42,332		42,332