Question

Question 2 REQUIRED:

(1) Complete the following partial worksheet.

2. (2) Using your worksheet information, prepare closing entries (for December 31 of the current year) in the journal paper on the next page. Note: Explanations are NOT required.

3. (3) Assuming the journal entries prepared in part (2) have been posted, prepare a Post-Closing Trial Balance (on the next page). Hint: you may find it helpful to use a T-account for calculating Capital.

account titles adjusted trial balance    income statement statement of changes in equity or balance sheet

	DR	CR	DR	CR	DR	CR
Cash	6,500
Accounts Receivable	1,500
Equipment	7,000
Accum. Dep. – Equipment		1,500
Accounts Payable		12,000
Unearned Revenue		2,000
Hugh Betcha, Capital		7,500
Hugh Betcha, Withdrawals	7,000
Fees Earned		7,000
Service Revenue		8,000
Wages Expense	9,000
Rent Expense	7,000
Totals	38,000	38,000

Answer 1