Post Closing Entries ABC Corporation Adjusted Trial Balance December 31, 2016 De
ID: 2519208 • Letter: P
Question
Post Closing Entries
ABC Corporation Adjusted Trial Balance December 31, 2016 Debit Credit Cash $ 834,544 Accounts Receivable 442,120 Allowance for doubtful accounts 75,000 Inventory 70,000 Allowance to Reduce Inventory to NRV 16,000 Prepaid Insurance 4,500 Land 88,000 Building 37,500 Accumulated depreciation: building 1,265 Equipment 21,600 Accumulated depreciation: equipment 9,900 Patent 45,000 Accounts Payable 88,851 Interest Payable 35,000 Income taxes payable 37,221 Wages payable 4,000 Unearned rent revenue 9,000 Bonds payable 700,000 Premium on Bonds payable 52,045 Common stock 135,000 PIC in Excess of Par- Common Stock 130,000 Paid in Capital- Treasury Stock 6,000 Retained earnings Treasury stock 10,000 Dividends 28,000 Sales Revenue 790,000 Rent Revenue 4,500 Purchases 177,000 Wages expense 66,150 Bad debt expense 75,000 Office expense 28,500 Insurance expense 22,500 Advertising expense 9,240 Depreciation expense 11,165 Interest expense 31,171 Loss on inventory 16,000 Utilities expense 33,571 Impairment loss expense 5,000 Income taxes expense 37,221 Total 2,093,782 2,093,782Explanation / Answer
1 Sales Revenue 790000 Rent Revenue 4500 to Income Summary 794500 2 Income Summary 442518 to Cost of good sold 107000 (177000-70000) to Wages expenses 66150 to Bad Debts 75000 to Office Expenses 28500 to Insurance 22500 to Advertising 9240 to Depreciation 11165 to Interest 31171 to Loss on inventory 16000 to Utilities exp 33571 to Impairment loss 5000 to Income tax 37221 3 Income Summary 347482 to retained earning 347482 4 Retained earning 38000 to Dividend 28000 to Treasury Stock 10000