Question

I need to prepare a post closing trial balance but my debits and credits are not equalling out.

Matt's Bowling Alley Adjusted Trial Balance December 31, 2018 Balance Account Title Debit Credit Cash 16,500 Accounts Receivable 2,600 Office Supplies 950 Prepaid Insurance 2.900 Land 25,000 Building 155.000 Accumulated Depreciation-Building 6,500 Fouipment 42.000 Print Done

I obtained my retained earnings by closing out service revenue & expenses to my income summary and then closing out income summary and dividends to retained earnings.

Answer 1

Matt's Bowling Alley Post Closing Trail Balance December 31,2018 Account Titile Debit Credit Cash $ 16,500 Accounts Receivables $ 2,600 Office Supplies $ 950 Prepaid Insurance $ 2.900 Land $ 25,000 Building $ 155,000 Accumulated Depreciation - Building $ 6,500 Equipment $ 42.000 Accumulated Depreciation - Equipment $ 16,000 Accounts Payable $ 3,900 Utilities Payable $ 750 Salaries Payable $ 3,600 Unearned Revenue S 800 Common stock $ 109,000 Retained Earnings $ 104,400 Totals S244.950 S 244,950

Current Ratio = 2.54 : 1 Working Notes: Current artio = Current assets/ current Liabilities Current assets = $16,500+$2,600+$950+$2,900 = $22.950 Current liailities = $3900+$750+$3600+$800 = $9,050 Current ratio = $22.950/99,050 = 2.54 : 1 Credit Debit $ 120,000 Date Account Titles with explanation Dec. 31 Service Revenue Income Summary (To close Sales Revenue account recorded) S 120.000 S 89,475 Dec. 31 Income Summary Insurance Expenses Salaries Expense Supplies Expenses Utilities Expenses Depreciation expense - Equipment Depreciation expense - Building (To close expenses accounts recorded) $ $ $ $ $ S 32,000 37,000 1.200 16,000 2.800 475

$ 30,525 Dec. 31 Income Summary Retained Earnings (To close Net Income to retained earnings ) $ 30,525 $ 28,000 Dec. 31 Retained Earnings Dividends (To close dividends account) $ 28,000 Retained earnings = Beginning + Net Income - Dividends = $101.875+$30,525-$28.000 = $104.400