Question # 4 Accounts from the adjusted trial balance at December 31, 2018, are
ID: 2340617 • Letter: Q
Question
Question # 4 Accounts from the adjusted trial balance at December 31, 2018, are listed in alphabetical order below for Laughter Limited: .. Closing Entries 10 marks 15 minutes Accounts payable Accounts receivable S 4,800 Income tax payable $ 4,000 19,750 Insurance expense 1,600 700 700 800 7,200 10,400 Accumulated depreciation- equipment 39,600 Interest expense 10,000 Interest payable Bank loan payable Cash Common shares Depreciation expense Dividends declared 11,000 Prepaid insurance 20,000 Rent expense 13,200 Retained earnings Equipment Fees earned Held for trading investments Income tax expense 2,000 Salaries expense 13,625 66,000 Salaries payable 60,600 Supplies 10,850 Supplies expense 4,000 Uneaned revenue 6,200 1,625 1,265 5,935 Instructions (a) Prepare an adjusted trial balance. (b) Prepare the closing journal entries.Explanation / Answer
LAUGHTER LIMITED
ADJUSTED TRIAL BALANCE
DECEMBER 31,2018
LAUGHTER LIMITED
ADJUSTED TRIAL BALANCE
DECEMBER 31,2018
Account title Debit credit cash 11000 Accounts receivable 19750 supplies 1265 Prepaid insurance 800 Held for trading investment 10850 Equipment 66000 Accumulated depreciation -equipment 39600 Accounts payable 4800 Bank loan payable 10000 unearned revenue 6200 Income tax payable 4000 Interest payable 700 salaries payable 1625 common shares 20000 Retained earning 10400 dividend declared 2000 Fees earned 60600 salaries expense 13625 supplies expense 5935 Interest expense 700 Insurance expense 1600 Income tax expense 4000 rent expense 7200 Depreciation expense 13200 Total 157925 157925