Question

Exercise 4-6 Preparing closing entries and the post-closing trial balance LO2,3,4

CHECK FIGURE: Post-closing trial balance columns = $51,300

The adjusted trial balance at April 30,2017 for Willard Co. follows

		Debit	Credit
101	Cash	3,600
106	Account receivable	8,500
153	Trucks	26,000
154	Accumulated depreciation, trucks		8,250
193	Franchise	13,200
201	Accounts Payable		9,600
209	Salaries Payable		3,200
233	Unearned Revenue		1,300
301	Sid Willard, capital		29,100
302	Sid Willard, withdrawals.	9,600
401	Plumbing Revenue		42,050
611	Depreciation Expense, Trucks	4,900
622	Salaries Expense	17,800
640	Rent Expense	3,000
677	Advertising Expense	6,900
901	Income Summary
Totals		93,500	93,500

Answer 1

Solution

Closing Entries
Date	Accounts and Explanations	Debit	Credit
Dec-31	Plumbing revenue	$       42,050.00
	Income Summery		$       42,050.00
	(Revenue accounts closed)
Dec-31	Income Summery	$       32,600.00
	Depreciation Expense, Trucks		$          4,900.00
	Salaries Expense		$       17,800.00
	Rent Expense		$          3,000.00
	Advertising Expense		$          6,900.00
	(Expenses Accounts closed)
Dec-31	Income Summery	$         9,450.00
	Sid Willard, capital		$          9,450.00
	(To close income summery)
Dec-31	Sid Willard, capital	$         9,600.00
	Sid Willard, withdrawals.		$          9,600.00
	(To close Drawings account)

.

Post closing Trial balance
		Debit	Credit
101	Cash	$         3,600.00
106	Account receivable	$         8,500.00
153	Trucks	$       26,000.00
154	Accumulated depreciation, trucks		$          8,250.00
193	Franchise	$       13,200.00
201	Accounts Payable		$          9,600.00
209	Salaries Payable		$          3,200.00
233	Unearned Revenue		$          1,300.00
301	Sid Willard, capital		$       28,950.00
	TOTALS	$       51,300.00	$       51,300.00