chapter five
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Chapter Five
Closing Entries and the Post-Closing Trial
Balance
Accounting is Fun! 5 - 2
Performance Objectives
1. List the steps in the accounting cycle
2. Journalize and post closing entries for a service enterprise
3. Prepare a post-closing trial balance
4. Define the following methods of accounting: accrual basis and modified cash basis
5. Prepare interim statements
Accounting is Fun! 5 - 3
List The Steps In The Accounting Cycle
1. Analyze source documents & record business transactions in a journal
2. Post journal entries to the ledger accounts
3. Prepare a trial balance4. Gather adjustment data and record
adjustments in the work sheet5. Complete the work sheet6. Create financial reports from data in work
sheet7. Journalize and post the adjusting entries8. Journalize and post the closing entries9. Prepare the post-closing trial balance
Accounting is Fun! 5 - 4
Closing Entries
• Entries made at the end of a fiscal period to close off the revenue, expense, and drawing accounts—that is, to make the balances of the temporary-equity accounts equal to zero
• Also called clearing the accounts
Accounting is Fun! 5 - 5
Purpose of Closing Entries
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Purpose of Closing Entries
• To close out balances that relate to one fiscal period and start fresh in the next period
• To zero out the following ledger accounts:– Revenue– Expenses
• To update the owner’s Capital account
Accounting is Fun! 5 - 7
Balances on the Financial Statements
Revenue: AssetsIncome from Services $7,270.00 Cash $23,250.00
Expenses: Accounts Receivable 200.00Wages Expense $1,690.00 Prepaid Insurance 330.00Rent Expense 900.00 Equipment $51,500.00Advertising Expense 400.00 Less Accumulated Depreciation 520.00 50,980.00Utilities Expense 160.00 Total Assets $74,760.00
Supplies Expense 540.00Insurance Expense 30.00 LiabilitiesDepreciation Expense, Equipment 520.00 Accounts Payable $4,440.00
Total Expense 4,240.00 Wages Payable 290.00Net Income $3,030.00 Total Liabilities $4,730.00
Owner's EquityL.A. Cruz, Capital 70,030.00Total Liabilities and Owner's Equity $74,760.00
L.A. Cruz, Capital, June 1, 2005 $70,000.00Net Income for June $3,030.00Less Withdrawals for June 3,000.00Increase in Capital 30.00L.A. Cruz, Capital, June 30, 2005 $70,030.00
Cruz Auto Detail Cruz Auto DetailIncome Statement Balance Sheet
For Month Ended June 30, 2005
For Month Ended June 30, 2005 June 30, 2005
Cruz Auto Detail
Statement of Owner's Equity
Accounting is Fun! 5 - 8
Revenue - Expenses = Net IncomeNet Income Statement of Owner’s Equity
Revenue: AssetsIncome from Services $7,270.00 Cash $23,250.00
Expenses: Accounts Receivable 200.00Wages Expense $1,690.00 Prepaid Insurance 330.00Rent Expense 900.00 Equipment $51,500.00Advertising Expense 400.00 Less Accumulated Depreciation 520.00 50,980.00Utilities Expense 160.00 Total Assets $74,760.00
Supplies Expense 540.00Insurance Expense 30.00 LiabilitiesDepreciation Expense, Equipment 520.00 Accounts Payable $4,440.00
Total Expense 4,240.00 Wages Payable 290.00Net Income $3,030.00 Total Liabilities $4,730.00
Owner's EquityL.A. Cruz, Capital 70,030.00Total Liabilities and Owner's Equity $74,760.00
L.A. Cruz, Capital, June 1, 2005 $70,000.00
Net Income for June $3,030.00
Less Withdrawals for June 3,000.00Increase in Capital 30.00L.A. Cruz, Capital, June 30, 2005 $70,030.00
For Month Ended June 30, 2005
For Month Ended June 30, 2005 June 30, 2005
Cruz Auto Detail
Statement of Owner's Equity
Cruz Auto Detail Cruz Auto DetailIncome Statement Balance Sheet
Accounting is Fun! 5 - 9
Withdrawals Statement of Owner’s Equity
Revenue: AssetsIncome from Services $7,270.00 Cash $23,250.00
Expenses: Accounts Receivable 200.00Wages Expense $1,690.00 Prepaid Insurance 330.00Rent Expense 900.00 Equipment $51,500.00Advertising Expense 400.00 Less Accumulated Depreciation 520.00 50,980.00Utilities Expense 160.00 Total Assets $74,760.00
Supplies Expense 540.00Insurance Expense 30.00 LiabilitiesDepreciation Expense, Equipment 520.00 Accounts Payable $4,440.00
Total Expense 4,240.00 Wages Payable 290.00Net Income $3,030.00 Total Liabilities $4,730.00
Owner's EquityL.A. Cruz, Capital 70,030.00Total Liabilities and Owner's Equity $74,760.00
L.A. Cruz, Capital, June 1, 2005 $70,000.00
Net Income for June $3,030.00
Less Withdrawals for June 3,000.00
Increase in Capital 30.00L.A. Cruz, Capital, June 30, 2005 $70,030.00
For Month Ended June 30, 2005
For Month Ended June 30, 2005 June 30, 2005
Cruz Auto Detail
Statement of Owner's Equity
Cruz Auto Detail Cruz Auto DetailIncome Statement Balance Sheet
From Drawing
Accounting is Fun! 5 - 10
Ending Capital Balance Sheet
Revenue: AssetsIncome from Services $7,270.00 Cash $23,250.00
Expenses: Accounts Receivable 200.00Wages Expense $1,690.00 Prepaid Insurance 330.00Rent Expense 900.00 Equipment $51,500.00Advertising Expense 400.00 Less Accumulated Depreciation 520.00 50,980.00Utilities Expense 160.00 Total Assets $74,760.00
Supplies Expense 540.00Insurance Expense 30.00 LiabilitiesDepreciation Expense, Equipment 520.00 Accounts Payable $4,440.00
Total Expense 4,240.00 Wages Payable 290.00Net Income $3,030.00 Total Liabilities $4,730.00
Owner's Equity
L.A. Cruz, Capital 70,030.00
Total Liabilities and Owner's Equity $74,760.00
L.A. Cruz, Capital, June 1, 2005 $70,000.00
Net Income for June $3,030.00
Less Withdrawals for June 3,000.00
Increase in Capital 30.00
L.A. Cruz, Capital, June 30, 2005 $70,030.00
For Month Ended June 30, 2005
For Month Ended June 30, 2005 June 30, 2005
Cruz Auto Detail
Statement of Owner's Equity
Cruz Auto Detail Cruz Auto DetailIncome Statement Balance Sheet
From Drawing
Accounting is Fun! 5 - 11
Revenues, Expenses, & Withdrawals Ending Capital
Revenue: AssetsIncome from Services $7,270.00 Cash $23,250.00
Expenses: Accounts Receivable 200.00Wages Expense $1,690.00 Prepaid Insurance 330.00Rent Expense 900.00 Equipment $51,500.00Advertising Expense 400.00 Less Accumulated Depreciation 520.00 50,980.00Utilities Expense 160.00 Total Assets $74,760.00
Supplies Expense 540.00Insurance Expense 30.00 LiabilitiesDepreciation Expense, Equipment 520.00 Accounts Payable $4,440.00
Total Expense 4,240.00 Wages Payable 290.00Net Income $3,030.00 Total Liabilities $4,730.00
Owner's Equity
L.A. Cruz, Capital 70,030.00
Total Liabilities and Owner's Equity $74,760.00
L.A. Cruz, Capital, June 1, 2005 $70,000.00
Net Income for June $3,030.00
Less Withdrawals for June 3,000.00
Increase in Capital 30.00
L.A. Cruz, Capital, June 30, 2005 $70,030.00
For Month Ended June 30, 2005
For Month Ended June 30, 2005 June 30, 2005
Cruz Auto Detail
Statement of Owner's Equity
Cruz Auto Detail Cruz Auto DetailIncome Statement Balance Sheet
From Drawing
Accounting is Fun! 5 - 12
Start Fresh for Next Period, July 1 To July 31, 2005
Revenue: AssetsIncome from Services $0.00 Cash $23,250.00
Expenses: Accounts Receivable 200.00Wages Expense $0.00 Prepaid Insurance 330.00Rent Expense 0.00 Equipment $51,500.00Advertising Expense 0.00 Less Accumulated Depreciation 520.00 50,980.00Utilities Expense 0.00 Total Assets $74,760.00
Supplies Expense 0.00Insurance Expense 0.00 LiabilitiesDepreciation Expense, Equipment 0.00 Accounts Payable $4,440.00
Total Expense 0.00 Wages Payable 290.00Net Income $0.00 Total Liabilities $4,730.00
Owner's Equity
L.A. Cruz, Capital 70,030.00
Total Liabilities and Owner's Equity $74,760.00
L.A. Cruz, Capital, July 1, 2005 $70,030.00Net Income for July $0.00Less Withdrawals for July 0.00Increase in Capital 0.00L.A. Cruz, Capital, July 31, 2005 $70,030.00
For Month Ended July 31, 2005
For Month Ended July 31, 2005 July 31, 2005
Cruz Auto Detail
Statement of Owner's Equity
Cruz Auto Detail Cruz Auto DetailIncome Statement Balance Sheet
All Revenues, Expenses, and Withdrawals from last period are reflected in the Capital account
See all the zeros?
Accounting is Fun! 5 - 13
Nominal or Temporary-Equity Accounts
• Accounts that apply to only one fiscal period and that are to be closed at the end of that fiscal period, such as revenue, expense, Income Summary, and Drawing accounts
• May also be described as all accounts except assets, liabilities, and the Capital account
Accounting is Fun! 5 - 14
Real or Permanent Accounts
• The accounts that remain open (assets, liabilities, and the Capital account in owner’s equity) and that have balances that will be carried over to the next fiscal period
Accounting is Fun! 5 - 15
Let’s Look at Closing with T Accounts
= +
+ - - + - +DR CR DR CR DR CR
- +
+ - - +DR CR DR CR
- +
+ - - +DR CR DR CR
Drawing Capital
Assets Liabilities Owner's Equity
Expenses Revenues
Real Accounts“Permanent Accounts”
Nominal Accounts“Temporary Equity
Accounts”
Closed & Put Here
Accounting is Fun! 5 - 16
After Closing
= +
+ - - + - +DR CR DR CR DR CR
+
- +DR CR
Assets Liabilities Owner's Equity
CapitalRevenues, Expenses, DrawingsClosed & Put Here
Accounting is Fun! 5 - 17
Closing Using T-Accounts
Closing Procedure1. Close revenue account(s) into Income
Summary
2. Close expense accounts into Income Summary
3. Close Income Summary into Capital
4. Close Drawing into Capital
Accounting is Fun! 5 - 18
Accounting is Fun! 5 - 19
Income Summary
• An account brought into existence to have a debit and credit for each closing entry– It does not have plus or minus sign, just debits and
credits
• Revenue and expense account balances are transferred to this account to allow calculation of net income and net loss
• Serves as the in-between account, or “holding tank,” before net income or net loss transferred to the Capital account
Accounting is Fun! 5 - 20
Step 1: Close Revenue Accounts into Income Summary
Accounting is Fun! 5 - 21
Step 2:Close Expense Accounts into Income Summary
Accounting is Fun! 5 - 22
Step 3: Close Income Summary into Capital
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Step 4: Close Drawing into Capital Account
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Closing Entries
• Entries into the journal made at the end of a fiscal period to close off the revenue, expense, and Drawing accounts—that is, to make the balances of the temporary-equity accounts equal to zero
• Closing is also called clearing the accounts
Accounting is Fun! 5 - 25
Journalize the Closing Entries
• Close the revenue accounts into Income Summary
• Close the expense accounts into Income Summary
• Close the Income Summary account into the Capital account (transferring net income or net loss to the Capital account)
• Close the Drawing account into CapitalBe sure to label the entries “Closing Entries” before you begin to
enter them into the journal
Accounting is Fun! 5 - 26
Journalize Steps 1–2
Accounting is Fun! 5 - 27
Journalize Steps 1–4
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Closing Hints
• When you want revenue and expense accounts to go to zero:– Create an offsetting debit or credit in Income
Summary to “balance it off”
• When closing Income Summary into Capital:– Net income is a credit to Capital– Net loss is a debit to Capital
• When closing Drawing into Capital:– Drawing is a debit to Capital– Remember: withdrawals are not expenses
Accounting is Fun! 5 - 29
Creating Journal Entries Directly from the Work Sheet
• Revenue and expenses come from the Income Statement columns
• Withdrawals come from the Balance Sheet debit column
• Automatic check: if your closing number from Income Summary to Capital is not the same as net income, you made a mistake
Accounting is Fun! 5 - 30
Post the Closing Entries
• Revenue, expense, and Drawing accounts should end up with zero balances– Draw a line through both the debit and
credit balance columns to indicate that they have been zeroed and closed
• Capital will more than likely have some net change for the period
Be sure to write “Closing” in the Item column of the ledger account
Accounting is Fun! 5 - 31
Posting Step 1 for Arch Copy Co.
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Posting Steps 1-3 for Arch Copy Co.
Accounting is Fun! 5 - 33
Post-Closing Trial Balance
• The listing of the final balances of the real accounts at the end of the fiscal period
• The opening balances for the next period
Accounting is Fun! 5 - 34
Post-Closing Trial Balance
• Accountant uses the post-closing trial balance to make sure that DR = CR– Have you done all the work correctly?
Accounting is Fun! 5 - 35
Errors: Post-Closing Trial Balance
• If DR ≠ CR– Columns added correctly?– Correct amounts transferred from the
ledger accounts?– Adjusting entries posted correctly? New
balances correct?– Closing entries posted correctly? New
balances correct?– All nominal accounts closed?
Accounting is Fun! 5 - 36
Performance Objective 4
Define the following methods of accounting: accrual basis and modified cash basis
Accounting is Fun! 5 - 37
Accrual Basis
• An accounting method under which revenue is recorded when it is earned, regardless of when the cash is received, and expenses are recorded when they are incurred, regardless of when they are paid
Accounting is Fun! 5 - 38
Modified Cash Basis
• An accounting method under which revenue is recorded only when it is received as cash
• Most expenses are recorded only when they are paid in cash– However, exceptions are made for
expenditures on items having a useful life of more than one year and for certain prepaid items
Accounting is Fun! 5 - 39
Modified Cash Basis Exceptions
• Expenditure for insurance premiums can be prorated, or spread out, over the fiscal periods covered
• Expenditures for long-lived items are recorded as assets and later depreciated as expenses over their useful lives
Accounting is Fun! 5 - 40
Interim Statements
• Financial statements prepared during the fiscal year, covering a period of time less than twelve months
Accounting is Fun! 5 - 41
Prepare Interim Statements
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Prepare Interim Statements
• Accountant prepares financial statements from the work sheet
• Accountant does not journalize and post the adjusting or closing entries until the end of the fiscal year
Accounting is Fun! 5 - 43
Demonstration Problem
• On the following page is the completed work sheet for:
• We are going to complete the following tasks:– Journalize the closing entries– Create the post-closing trial balance
Joe's Accounting Service
Accounting is Fun! 5 - 44
DR CR DR CR DR CR DR CR
Cash 4,381.00 4,381.00 4,381.00
Accounts Receivable 578.00 578.00 578.00
Prepaid Property Insurance 397.00 a) 200.00 197.00 197.00
Prepaid Auto Insurance 1,138.00 b) 100.00 1,038.00 1,038.00
Equipment 5,713.00 5,713.00 5,713.00
Accumulated Depreciation, Equipment 2,487.00 c) 250.00 2,737.00 2,737.00
Accounts Payable 997.00 997.00 997.00
J. Pham, Capital 5,964.00 5,964.00 5,964.00
J. Pham, Drawing 1,800.00 1,800.00 1,800.00
Professional Fees 8,131.00 8,131.00 8,131.00
Salary Expense 2,000.00 d) 400.00 2,400.00 2,400.00
Advertising Expense 887.00 887.00 887.00
Utilities Expense 685.00 685.00 685.00
17,579.00 17,579.00
Property Insurance Expense a) 200.00 200.00 200.00
Auto Insurance Expense b) 100.00 100.00 100.00
Depreciation Expense, Equipment c) 250.00 250.00 250.00
Salaries Payable d) 400.00 400.00 400.00
950.00 950.00 18,229.00 18,229.00 4,522.00 8,131.00 13,707.00 10,098.00
Net Income 3,609.00 3,609.00
8,131.00 8,131.00 13,707.00 13,707.00
DR
Joe's Accounting ServiceWork Sheet
For The Month Ended June 30, 2003
Adjustments Balance SheetTrial Balance Adjusted Trial Balance Income StatementAccount Name CR
Accounting is Fun! 5 - 45
Page J43
DescriptionPost.Ref. Debit Credit
1 Adjusting Entries2 20033 June 30 Property Insurance Expense 650 200.004 Prepaid Property Insurance 160 200.0056 30 Auto Insurance Expense 651 100.007 Prepaid Auto Insurance 161 100.0089 30 Depreciation Expense, Equipment 620 250.00
10 Accumulated Depreciation, Equipment 120 250.001112 30 Salary Expense 615 400.0013 Salaries Payable 230 400.001415 Closing Entries16 30 Professional Fees 8,131.0017 Income Summary 8,131.001819202122232425262728293031
General Journal
Date
Line #
Clo
sing
: Ste
p 1
Accounting is Fun! 5 - 46
DR CR DR CR DR CR DR CR
Cash 4,381.00 4,381.00 4,381.00
Accounts Receivable 578.00 578.00 578.00
Prepaid Property Insurance 397.00 a) 200.00 197.00 197.00
Prepaid Auto Insurance 1,138.00 b) 100.00 1,038.00 1,038.00
Equipment 5,713.00 5,713.00 5,713.00
Accumulated Depreciation, Equipment 2,487.00 c) 250.00 2,737.00 2,737.00
Accounts Payable 997.00 997.00 997.00
J. Pham, Capital 5,964.00 5,964.00 5,964.00
J. Pham, Drawing 1,800.00 1,800.00 1,800.00
Professional Fees 8,131.00 8,131.00 8,131.00
Salary Expense 2,000.00 d) 400.00 2,400.00 2,400.00
Advertising Expense 887.00 887.00 887.00
Utilities Expense 685.00 685.00 685.00
17,579.00 17,579.00
Property Insurance Expense a) 200.00 200.00 200.00
Auto Insurance Expense b) 100.00 100.00 100.00
Depreciation Expense, Equipment c) 250.00 250.00 250.00
Salaries Payable d) 400.00 400.00 400.00
950.00 950.00 18,229.00 18,229.00 4,522.00 8,131.00 13,707.00 10,098.00
Net Income 3,609.00 3,609.00
8,131.00 8,131.00 13,707.00 13,707.00
DR
Joe's Accounting ServiceWork Sheet
For The Month Ended June 30, 2003
Adjustments Balance SheetTrial Balance Adjusted Trial Balance Income StatementAccount Name CR
Accounting is Fun! 5 - 47
Clo
sing
: Ste
p 2
Page J43
DescriptionPost.Ref. Debit Credit
1 Adjusting Entries2 20033 June 30 Property Insurance Expense 650 200.004 Prepaid Property Insurance 160 200.0056 30 Auto Insurance Expense 651 100.007 Prepaid Auto Insurance 161 100.0089 30 Depreciation Expense, Equipment 620 250.00
10 Accumulated Depreciation, Equipment 120 250.001112 30 Salary Expense 615 400.0013 Salaries Payable 230 400.001415 Closing Entries16 30 Professional Fees 8,131.0017 Income Summary 8,131.001819 30 Income Summary 4,522.0020 Salary Expense 2,400.0021 Advertising Expense 887.0022 Utilities Expense 685.0023 Property Insurance Expense 200.0024 Auto Insurance Expense 100.0025 Depreciation Expense, Equipment 250.00262728293031
General Journal
Date
Line #
Accounting is Fun! 5 - 48
Clo
sing
: Ste
p 3
Page J43
DescriptionPost.Ref. Debit Credit
1 Adjusting Entries2 20033 June 30 Property Insurance Expense 650 200.004 Prepaid Property Insurance 160 200.0056 30 Auto Insurance Expense 651 100.007 Prepaid Auto Insurance 161 100.0089 30 Depreciation Expense, Equipment 620 250.00
10 Accumulated Depreciation, Equipment 120 250.001112 30 Salary Expense 615 400.0013 Salaries Payable 230 400.001415 Closing Entries16 30 Professional Fees 8,131.0017 Income Summary 8,131.001819 30 Income Summary 4,522.0020 Salary Expense 2,400.0021 Advertising Expense 887.0022 Utilities Expense 685.0023 Property Insurance Expense 200.0024 Auto Insurance Expense 100.0025 Depreciation Expense, Equipment 250.002627 30 Income Summary 3,609.0028 J. Pham, Capital 3,609.00293031
General Journal
Date
Line #
Accounting is Fun! 5 - 49
DR CR DR CR DR CR DR CR
Cash 4,381.00 4,381.00 4,381.00
Accounts Receivable 578.00 578.00 578.00
Prepaid Property Insurance 397.00 a) 200.00 197.00 197.00
Prepaid Auto Insurance 1,138.00 b) 100.00 1,038.00 1,038.00
Equipment 5,713.00 5,713.00 5,713.00
Accumulated Depreciation, Equipment 2,487.00 c) 250.00 2,737.00 2,737.00
Accounts Payable 997.00 997.00 997.00
J. Pham, Capital 5,964.00 5,964.00 5,964.00
J. Pham, Drawing 1,800.00 1,800.00 1,800.00
Professional Fees 8,131.00 8,131.00 8,131.00
Salary Expense 2,000.00 d) 400.00 2,400.00 2,400.00
Advertising Expense 887.00 887.00 887.00
Utilities Expense 685.00 685.00 685.00
17,579.00 17,579.00
Property Insurance Expense a) 200.00 200.00 200.00
Auto Insurance Expense b) 100.00 100.00 100.00
Depreciation Expense, Equipment c) 250.00 250.00 250.00
Salaries Payable d) 400.00 400.00 400.00
950.00 950.00 18,229.00 18,229.00 4,522.00 8,131.00 13,707.00 10,098.00
Net Income 3,609.00 3,609.00
8,131.00 8,131.00 13,707.00 13,707.00
DR
Joe's Accounting ServiceWork Sheet
For The Month Ended June 30, 2003
Adjustments Balance SheetTrial Balance Adjusted Trial Balance Income StatementAccount Name CR
Check Number for Step 3 Closing Entry
Accounting is Fun! 5 - 50
Clo
sing
: Ste
p 4
Page J43
DescriptionPost.Ref. Debit Credit
1 Adjusting Entries2 20033 June 30 Property Insurance Expense 650 200.004 Prepaid Property Insurance 160 200.0056 30 Auto Insurance Expense 651 100.007 Prepaid Auto Insurance 161 100.0089 30 Depreciation Expense, Equipment 620 250.00
10 Accumulated Depreciation, Equipment 120 250.001112 30 Salary Expense 615 400.0013 Salaries Payable 230 400.001415 Closing Entries16 30 Professional Fees 8,131.0017 Income Summary 8,131.001819 30 Income Summary 4,522.0020 Salary Expense 2,400.0021 Advertising Expense 887.0022 Utilities Expense 685.0023 Property Insurance Expense 200.0024 Auto Insurance Expense 100.0025 Depreciation Expense, Equipment 250.002627 30 Income Summary 3,609.0028 J. Pham, Capital 3,609.002930 30 J. Pham, Capital 1,800.0031 J. Pham, Drawing 1,800.00
General Journal
Date
Line #
Accounting is Fun! 5 - 51
Post In Order To Get Information Into Ledger Accounts
Account: Professional Fees Account No: 411
Debit Credit1 20032 June 15 J 40 8,131.00 8,131.00 3456
Line #
BalanceCreditDebit
Post.Ref.Item
General Ledger
Date
Account: Professional Fees Account No: 411
Debit Credit1 20032 June 15 J 40 8,131.00 8,131.00 3 30 Closing J43 8,131.00 456
Line #
BalanceCreditDebit
Post.Ref.Item
General Ledger
Date
Accounting is Fun! 5 - 52
Page J43
DescriptionPost.Ref. Debit Credit
1 Adjusting Entries2 20033 June 30 Property Insurance Expense 650 200.004 Prepaid Property Insurance 160 200.0056 30 Auto Insurance Expense 651 100.007 Prepaid Auto Insurance 161 100.0089 30 Depreciation Expense, Equipment 620 250.00
10 Accumulated Depreciation, Equipment 120 250.001112 30 Salary Expense 615 400.0013 Salaries Payable 230 400.001415 Closing Entries16 30 Professional Fees 411 8,131.0017 Income Summary 8,131.001819 30 Income Summary 4,522.0020 Salary Expense 2,400.0021 Advertising Expense 887.0022 Utilities Expense 685.0023 Property Insurance Expense 200.0024 Auto Insurance Expense 100.0025 Depreciation Expense, Equipment 250.002627 30 Income Summary 3,609.0028 J. Pham, Capital 3,609.002930 30 J. Pham, Capital 1,800.0031 J. Pham, Drawing 1,800.00
General Journal
Date
Line #
Pos
t Ref
eren
ce!
Accounting is Fun! 5 - 53
Create Post-Closing Trial Balance
4,381.00578.00197.00
1,038.005,713.00
2,737.00997.00400.00
7,773.0011,907.00 11,907.00
Joe's Accounting ServicePost-Closing Trial Balance
June 30, 2003
CashAccounts ReceivablePrepaid Property InsurancePrepaid Auto Insurance
Accumulated Depreciation, EquipmentEquipment
Accounts PayableSalaries PayableJ. Pham, Capital
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