ng the Accounting Cycle Instructions (a) Prepare closing entries (b) Prepare a p

Question

ng the Accounting Cycle Instructions (a) Prepare closing entries (b) Prepare a post-closing trial balance. at June 30, 2017. its fiscal year on July 31, 2017. The companys adjusterd E4-8 Windsor Company, Ltd. ended trial balance as of the end of its fiscal year is shown below. WINDSOR COMPANY, LTD. Adjusted Trial Balance July 31, 2017 Debit Credit No. Account Titles E 9,840 8,140 15,900 101 Cash 112 Accounts Receivable 157 Equipment 158 Accumulated Depreciation-Equip. 201 Accounts Payable 208 Unearned Rent Revenue 311 Share Capital-Ordinary 320 Retained Earnings 332 Dividends 400 Service Revenue 429 Rent Revenue 711 Depreciation Expense 726 Salaries and Wages Expense £ 5,400 2,220 3,800 18,000 20,260 12,000 64,000 6,500 3,700 55,700 14,900 732 Utilities Expense £120,180 £120,180 Instructions (a) Prepare the closing entries using page J15. (b) Post to Retained Earnings and No. 350 Income Summary accounts. (Use the thr column form.) (c) Prepare a post-closing trial balance at July 31.

Explanation / Answer

Date Account Titles and Explanation Debit Credit July 31 Service Revenue $        64,000 Rent Revenue $          6,500 Income Summary $        70,500 (To close revenue accounts) July 31 Income Summary $        74,300 Depreciation Expense $          3,700 Salaries and Wages Expense $        55,700 Utilities Expense $        14,900 (To close expense accounts) July 31 Retained Earnings $          3,800 Income Summary $          3,800 (To close net income/loss) July 31 Retained Earnings $        12,000 Dividends $        12,000 (To close dividends) Retained Earnings No. 320 Date Explantion Ref Debit Credit Balance July 31 Balance J15          20,260 July 31 Close Net Income/Loss J15              3,800          16,460 July 31 Close Dividends J15            12,000            4,460 Income Summary No. 350 Date Explantion Ref Debit Credit Balance July 31 Close Revenues J15      70,500          70,500 July 31 Close Expenses J15            74,300          (3,800) July 31 Close Net Income/Loss J15         3,800                   -   WINDSOR COMPANY, LTD Post-Closing Trial balance Debit Credit Cash               9,840 Accounts Receivable               8,140 Equipment            15,900 Accumulated Depreciation - Equipment              5,400 Accounts payable              2,220 Unearned Rent Revenue              3,800 Common Stock            18,000 Retained Earnings              4,460 Totals $        33,880 $        33,880

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