Question

The following transactions pertain to Smith Training Company for Year 1:

Jan.	30		Established the business when it acquired $48,000 cash from the issue of common stock.
Feb.	1		Paid rent for office space for two years, $17,400 cash.
Apr.	10		Purchased $880 of supplies on account.
July	1		Received $28,000 cash in advance for services to be provided over the next year.
	20		Paid $660 of the accounts payable from April 10.
Aug.	15		Billed a customer $9,300 for services provided during August.
Sept.	15		Completed a job and received $2,600 cash for services rendered.
Oct.	1		Paid employee salaries of $31,000 cash.
	15		Received $8,700 cash from accounts receivable.
Nov.	16		Billed customers $31,500 for services rendered on account.
Dec.	1		Paid a dividend of $1,100 cash to the stockholders.
	31		Adjusted records to recognize the services provided on the contract of July 1.
	31		Recorded $2,500 of accrued salaries as of December 31.
	31		Recorded the rent expense for the year. (See February 1.)
	31		Physically counted supplies; $80 was on hand at the end of the period.

f. Prepare a post-closing trial balance for Year 1. (Round your final answers to the nearest whole dollar amount.)

	SMITH TRAINING COMPANY Post-Closing Trial Balance December 31, Year 1 Account Titles Debit Credit Totals $0 $0

Answer 1

SMITH TRAINING COMPANY
Post-Closing Trial Balance
December 31, Year 1
Account Titles	Debit($)	Credit($)
Cash	38,240
Common stock (Equity)		48,000
Rent	8,700
Purchase	880
Account payable		220
Account Receivable	32,100
Sales		71,400
Salaries	33,500
Salaries outstanding		2,500
Prepaid Rent	8,700
TOTAL	122,120	122,120

Adjustments;

Closing balance of inventory = $80

Dividend paid to stockholders= $1,100