Question

Exercise 3-18 Record closing entries and prepare a post-closing trial balance (LO3-6, 3-7) Laker Incorporated's fiscal year-end is December 31, 2018. The following is an adjusted trial balance as of December 31 Accounts Cash Supplies Prepaid Rent Accounts Payable Notes Payable Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Advertising Expense Rent Expense Utilities Expense Credit Debit 10,500 31,500 22,500 $ 1,500 15,000 32,500 2,500 55,500 18,500 11,500 8,500 6,500 Totals $112,000 112,000

Answer 1

1)

Date	General Journal	Debit	Credit
December, 31,2018	Service Revenue	$ 55,500.00
	Retained Earnings		$ 55,500.00
December, 31,2018	Retained Earnings	$ 45,000.00
	Salaries Expense		$ 18,500.00
	Advertising Expense		$ 11,500.00
	Rent Expense		$    8,500.00
	Utilities Expense		$    6,500.00
December, 31,2018	Retained Earnings	$    2,500.00
	Dividend		$    2,500.00

2)

		Calculation of Ending Balance of Retained Earnings
	Opening Balance	$                   7,500.00
	Profit (55,500-45,000)	$                10,500.00
	Dividend	$                (2,500.00)
	Ending Balance	$                15,500.00

3)

LAKER INCORPORATED
Post-Closing Trail Balance
December 31,2018
Accounts	Debit	Credit
Cash	$ 10,500.00
Supplies	$ 31,500.00
Prepaid Rent	$ 22,500.00
Accounts Payable		$    1,500.00
Notes Payable		$ 15,000.00
Common Stock		$ 32,500.00
Retained Earnings		$ 15,500.00
Total	$ 64,500.00	$ 64,500.00