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The adjusted trial balance shown below is for Rich Company at the end of its fis

ID: 2370088 • Letter: T

Question

The adjusted trial balance shown below is for Rich Company at the end of its fiscal year.

                                Rich Company

                                Trial Balance

                                March 31, 2011

Cash                                              $12,900

Accounts Receivable                                         9,400

Office Supplies                                  700

Prepaid Insurance                        2,500

Office Equipment                                            16,000

Accum. Depr: office Equipment                                                                        $4,800

Accounts Payable                                                                            5,800

Salaries Payable                                                                              1,100

Unearned rent revenue                                                                  600

Common stock                                                                             10,000

Retained earnings                                                                         5,600

Dividends                               3,800

Service revenue                                                                          39,600

Rent revenue                                                                                                       14,400

Salaries expense                 20,100

Office supplies expense      1,800

Rent expense                                               12,000

insurance expense             1,500

           depreciation expense          1,200

                                                      $81,900                                          $81,900

Prepare the closing entries at March 31

Explanation / Answer

DEBITS: Cash $18,000, Supplies 13,900, Prepaid Insurance 2,000, Equipment 23,000, Dividends 6,000, Depreciation Expense-Equipment 2,000, Salaries Expense 21,687, Insurance Expense 1,562, Rent Expense 2,492, Supplies Expense 1,227 ------> Totals=91,868

CREDITS: Accumulated Depreciation-Equipment $6,500, Common Stock 18,168, Retained Earnings 30,000, Services Revenue 37,200 --------> Totals= 91,868

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