The year-end financial statements of Fighting Illini Financial Services are prov
ID: 2386762 • Letter: T
Question
The year-end financial statements of Fighting Illini Financial Services are provided below.
Prepare a post-closing trial balance. (Hint: The balance of retained earnings will be the amount shown in the balance sheet.) (The items in the Trial Balance should be grouped as follows: Assets and Liabilities (in order of their liquidity) and Equity. Omit the "$" sign in your response.)
FIGHTING ILLINI Income Statement Service revenue $ 84,700 Expenses: Salaries $ 49,000 Supplies 9,100 Rent 7,500 Delivery 3,700 69,300 Net income $ 15,400Explanation / Answer
1. Record year-end closing entries. General Journal Closing entries Date Account Titles and Explaination Debit Credit Dec 31, Service revenue 84,700 Income Summary 84,700 (To close revenue account) 31 Income summary 69,300 Salaries 49,000 Supplies 9,100 Rent 7,500 Delivery 3,700 (To close expense account) 31 Income summary 15,400 Retained Earnings 15,400 (To close net income to retained earnings) 2.Prepare a post-closing trial balance. FIGHTING ILLINI Post-Closing Trial Balance Accounts Debit Credit Cash 6,600 Accounts receivable 9,200 Land 110,000 Accounts payable 9,100 Common stock 75,000 Retained earnings 41,700 $125,800 $125,800
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