Question

Data Table credit Rachael Rey's Music Company Adjusted Trial Balance June 30, 2018 Balance Account Title Debit Cash 4,000 Accounts Receivable 38,400 Merchandise Inventory 18,100 Office Supplies 300 Furniture 39,900 Accumulated Depreciation Furniture Accounts Payable Salaries Payable 8,200 13,800 850 7 con Print Done

Answer 1

Requirement 1:

Income Statement
For the year ended June 30,2018
Sales revenue		$184,000
Cost of goods sold		($85,500)
Gross profit		$98,500
Operating expenses:
Selling expense	$18,600
Administrative expense	$12,000
Total operating expenses		$30,600
Operating income		$67,900
Other revenues(Expenses):
Interest expense		($1,900)
Net income		$66,000

Requirement 2:

Date	Account title and Explanation	Debit	Credit
June 30,2018	Sales revenue	$184,000
	Income summary		$184,000
	[To close revenue accounts]
June 30,2018	Income Summary	$118,000
	Cost of goods sold		$85,500
	Selling expense		$18,600
	Administrative expense		$12,000
	Interest expense		$1,900
	[To close expenses accounts]
June 30,2018	Income summary [184,000-118,000]	$66,000
	Retained earnings		$66,000
	[To close income summary account]
June 30,2018	Retained earnings	$40,000
	Dividends		$40,000
	[To close dividend account]

Requirement 3:

Post-Closing Trial balance
For the year ended June 30,2018
Account title	Debit	Credit
Cash	$4,000
Accounts receivable	$38,400
Merchandise inventory	$18,100
Office Supplies	$300
Furniture	$39,900
Accumulated depreciation-Furniture		$8,200
Accounts payable		$13,800
Salaries payable		$850
Unearned revenue		$7,500
Notes payable, long-term		$17,000
Common stock		$6,000
Retained earnings*		$47,350
Total	$100,700	$100,700

*Retained earnings = 21,350 beg.+66,000 net income - 40,000 dividends = $47,350