Question

Instructions: Below is the adjusted trial balance for Central Advertising Inc. (1) Prepare an Income Statement, Statement of Retained Earnings, and a Balance Sheet. (2) Then prepare closing entries, post them to t-accounts, and prepare a post-closing trial balance. Central Advertising Inc. Adjusted Trial Balance August 31, 20xx Income Statement $19075 4750 1250 700 8000 $ 200 600 2000 Cash Accounts Receivable Prepaid Insurance Advertising Supplies Equipment Accumulated Depe Accounts Payable Unearned Revenue Interest Payable Notes Payable Common Stock Retained Eamings Dividends Advertising Revenue Depreciation Expense Insurance Expense Interest Expense Supplies Expense Usity Expense Totals 50 5000 13000 0 2000 17750 250 100 1025 Statement of Retained Earnings

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Income Statement: 17,750 Advertising Revenue Less: Expense Depreciation Expense Insurance Expense Interest Expense Supplies Expense Utilities Expense Total Expense Net Income $ $ $ $ $ 200 250 50 1,300 1,025 Balance Sheet: Assets: Current Assets: Cash Accounts Receivable Prepaid Insurance Advertising Supplies Total Current Assets Equipment Acc Depp Total Assets Liabilities and Equity: 19,075 4,750 1,250 700 25,775 (2,825) 14,925 8,000 (200) $ $ 7,800 33,575 600 2,000 50 5,000 7,650 Statement of Retained Earning: Accounts Payable Unearned Revenue Interest Payable Note Payable Total Liabilities Stockholder's Equity: Common Stock Retained Earning Total Stockholder's Equity Total Liabilities and Equity Beginning Balance Add: Net Income Less: Dividend Ending Balance 14,925 (2,000) 12,925 13,000 12,925 25,925 33,575 Closing Entries: Post Closing Trial Balance: $ 17,750 Advertising Revenue Income Summary (To close revenue account) 17,750 19,075 4,750 1,250 700 8,000 $ 2,825 Income Summary Depreciation Expense Insurance Expense Interest Expense Supplies Expense Utilities Expense (To close expense account) 200 250 50 1,300 1,025 Cash Accounts Receivable Prepaid Insurance Advertising Supplies Equipment Acc Depp Accounts Payable Unearned Revenue Interest Payable Note Payable Common Stock Retained Earning $ 200 600 2,000 50 5,000 13,000 12,925 $ $ $ $ 14,925 Income Summary Retained Earning (To close income summary) 14,925 Total 33,775 $ 33,775 $ 2,000 Retained Earning Dividends (To close dividned account) 2,000

T- Accounts Retained Earning Debit Credit 04 $ 2,000 Beginning $ 2,825 c1 17,750 Ending $ 12,925 Dividends Debit Credit Unadjusted $ 2,000 04 2,000 Ending $ - Advertising Revenue Debit Credit C1 $ 17,750 Unadjusted 17,750 Ending Depreciation Expense Debit Credit Unadjusted $ 200 C2 200 Ending Insurance Expense Debit Credit Unadjusted $ 250 C2 250 Ending Interest Expense Debit Credit Unadjusted $ 50 c2 - 50 50 Ending Supply Expense Debit Credit Unadjusted $ 1,300 02 1,300 Ending $ - Utility Expense Debit Credit Unadjusted $ 1,025 c2 1,025 Ending $ .