Question

Fixing the Closing Entries

Your answer is correct. Prepare a classified balance sheet. (Note: $5,000 of the notes payable become due in 2018.) (List Current Assets in order of liquidity.) ALSHWER COMPANY Balance Sheet December 31, 2017 Assets TCurrent Assets T Cash 5300 T Accounts Receivable 10800 T Supplies 1500 | Prepaid Insurance 2000 T Total Current Assets 19600 Property, plant and Equipment T Equipment 무 27000 T Less TAccumulated Depreciation- 5600 21400 T Total Assets 41000 Liabilities and Stockholders' Equity Current Liabilities T Accounts Payable 6100 T Salaries and Wages Pay 2400 T Interest Payable 600 T Notes Payable 5000 T Total Current Liabilities C 14100 TLong-term Liabilities T Notes Payable 10000 T Total Liabilities 24100 T Stockholders' Equity T Common Stock 10000 T Retained Earnings 6900 T Total Stockholders' Equity 16900 T Total Liabilities and Stockholders' Equity 41000 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT

Answer 1

Answer:

I have given below the postings of only incorrect ones:

Date Jan. 31 Dec. 31 Dec. 31 Explanation Balance Closing Entry Closing Entry Retained Earnings No. 301 Ref Debit Credit Balance 3000 J14 10900 13900 J14 L 7000 6900 Dividends Ref Debit Date Dec. 31 Dec. 31 Explanation Balance Closing Entry No. 306 Credit Balance 7000 7000 J14 Date Dec. 31 Dec. 31 Dec. 31 Explanation Closing Entry Closing Entry Closing Entry Income Summary No. 350 Ref Debit Credit Balance J14 61000 61000 J14 50100 10900 J14 10900 Credit Date Dec. 31 Dec. 31 Service Revenue Explanation Ref Debit Balance Closing Entry J14 61000 No. 400 Balance 610001

The Jan 31 balance of retained earnings is derived figure. As the classified balance sheet gives ending balance of retained earnings = $6,900