Question

ACC212 - PRACTICE COMPREHENSIVE PROBLEM In 2019, Lane King created the Chaos Coordination Company which provided playground equipment and design for Day Care Centers and Elementary Schools. In 2019, the following transactions occurred: 1. 1/1/2019 Stockholders invested $450,000 in cash in the business in exchange for common stock 2. 1/1/2019 Purchased Equipment for $10,000 in Cash 3. 2/1/2019 Paid $24,000 for One year Office Rent 4. 2/1/2019 Pre-paid $5,280 for two years of advertising in the local newspaper. 5. 2/1/2019 Purchased $7.400 in Office Supplies on Account 6. 3/1/2019 Purchased Business Insurance for an annual cost of $6,900 7. 4/1/2019 Paid 50% of Office Supplies bill purchased on account in transaction 5 8. 8/1/2019 Received a $175,000, 4 year note payable from Chase Bank with a 4.5% interest rate. Interest is payable semi-annually (1/31 and 7/31) 9. Earned $690,000 for services and sales provided: These are a $225,000 was received by customers in cash b. $465,000 was billed to customers the full year- 10. Paid salaries for employees of $144,500 just put a date 11. Received a cash advance for Order of $85,000 not yet produced of 12/31 12. Pald Utilities of $12.200 13. Received $385.200 in cash for customers from biled transactions 14. Declared and Paid a $2,000 dividend Step One: Journalize the above transactions, post to the ledger (T-Accounts) and prepare a trial balance. transactions for Step Twe: After reviewing the trial balance, prepare any adjusting entries necessary for the year (note, pay special attention to dates). In addition, the following adjustments were noted: • Employees salaries for the last week of December and not yet paid total $22.200 After reviewing the A/R aging, management estimated that approximately $32.600 will not be collectible • Utilities Expense incurred but not recorded totaled $2,750 • Equipment is depreciated on a straight line basis with $1.000 salvage over years • A physical count of office supplies noted a balance of $725 Services provided but not yet billed totaled $37,400 Post all adjusting entries to T-Accounts Step Three: Prepare an adjusted Trial balance after posting all of the above entries Step Four: Prepare an Income Statement, Statement of Retained Earnings and Balance Sheet for the 2019 year. Step Five: Prepare closing entries for the 2019 year. Step 6: Prepare a post-closing trial balance for Chaos Coordination Company

Please someone help with me STEP 5 AND 6 FOR THIS PROBLEM!

Answer 1

To complete the step 5 and Step 6, Unadjusted trial balance and adjusted trial balance is to be prepared.

In case of Interest, It is assumed that Interest is payable from February.

Interest Expense is for only 11 months from february.

Interest payable will be from August to December.

Interest up to July is paid through cash.

Please go through the following attachments.

For Solution of Step 5 and Step 6, Adjusted Trial Balance is to be prepared. Unadjusted Adjustments Adjustments Income Statement Post Closing Trial Balance Closing Entries Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 11116201 3938 1107683 1107683 Common Stock 450000 450000 450000 Account Title Debit Credit Equipment 10000 10000 10000 Service and Sales Revenue 727400 Rent Expense 24000 24000 24000 Income summary 727400 Prepaid Advertisement 5280 2640 2640 2640 Supplies 7400 6675 725 725 Accounts Payable 3700 3700 3700 Income Summary 263933.8 Insurance Expense 6900 6900 6900 Rent Expense 24000 Note Payable 175000 175000 175000 Insurance Expense 6900 Service and Sales Revenue 690000 37400 727400 727400 Salaries Expense 166700 Accounts Receivable 79800 37400 32600 84600 84600 Utilities Expense 14950 Salaries Expense 144500 22200 166700 166700 Bad debts Expense 32600 Unearned service and sales revenue 85000 85000 85000 Depreciation Expense 2250 Utilities Expense 12200 2750 14950 14950 Supplies Expense 6675 Dividends 2000 2000 Advertisement Expenses 2640 Salaries Payable 222001 22200 22200 Interest Expense 7219 Bad debts Expense 32600 32600 32600 Utilities Payable 2750 2750 2750 Income Summary 463466 Depreciation Expense 2250 2250 2250 Retained Earnings 463466 Accumulated Depreciation 2250 2250 2250 Supplies Expense 6675 6675 6675 Retained Earnings 2000 Advertisement Expenses 2640 2640 2640 Dividends 2000 Interest Payable 3281 3281 3281 Interest Expense 7219 7219 7219 Retained Earnings 463466 461466 463466-2000 Total 1403700 1403700 113733.8113733.8 1471581| 1471581 727400 727400 1205648 1205647|