Example similar to P3-6A Record closing entries and prepare a post-closing trial balance

SUPPLY ACCOUNTING SERVICES

Income Statement
Service revenue $87,500
Expenses:
Salaries $46,000
Utilities 8,200
Insurance 5,800
Supplies 2,100 62,100
Net income $25,400
SUPPLY ACCOUNTING SERVICES
Statement of Stockholders' Equity
Common Retained
Stock Earnings Total SE
Beginning balance, Jan. 1 $60,000 $24,500 84,500
Issue stock 30,000 30,000
Net income 25,400 25,400
Dividends (6,000) (6,000)
Ending balance, Dec. 31 $90,000 $43,900 $133,900
SUPPLY ACCOUNTING SERVICES
Balance Sheet
Assets Liabilities
Cash $14,700 Accounts payable $3,000
Accounts receivable 7,200 Stockholders' Equity:
Land 115,000 Common stock $90,000
Retained earnings 43,900
Total SE 133,900
Total assets $136,900 Total liabilities and equities $136,900
1. Record year-end closing entries
Date General Journal Debit Credit
1 December 31 Service Revenue 87,500
Retained Earnings 87,500
2 December 31 Retained Earnings 62,100
Salaries Expense 46,000
Utilities Expense 8,200
Insurance Expense 5,800
Supplies Expense 2,100
3 December 31 Retained Earnings 6,000
Dividends 6,000
2.Prepare a post-closing trial balance.
SUPPLY ACCOUNTING SERVICES
Post-Closing Trial Balance
Accounts Debit Credit
Cash $14,700
Accounts Receivable 7,200
Land 115,000
Accounts Payable 3,000
Common Stock 90,000
Retained Earnings 43,900
Totals $136,900 $136,900