Question

Part 4 Required: A. Prepare Closing Entries B. Update General Ledger Balances from Parts 1 & 2 C. Prepare a Post-Closing Trial Balance Closing Entries Date Account Titles Debit Credit

Answer 1

Part A

Closing entries
Date	General Journal	Debit	Credit
Feb 28	Tutoring service revenue	$        40,590
	Income Summary		$        40,590
	(To record close sales revenue account to income statement.)
Feb 28	Income Summary	$        36,922
	Wages expense		$        23,900
	Utility expense		$          3,330
	Insurance expense		$              217
	Supplies expense		$          7,600
	Depreciation expense		$              625
	Interest expense		$          1,250
	(To record close Expense accounts to income statement.)
Feb 28	Income Summary	$          3,668
	Retained earnings		$          3,668
	(To record close income summary to retained earnings.) (40590-36922)
Feb 28	Retained earnings	$          2,000
	Dividends		$          2,000
	(To record close dividends account to retained earnings.)

Part B

Cash
Adj. Bal	$    40,820
Clo. Bal	$    40,820
Accounts receivable
Adj. Bal	$      6,840
Clo. Bal	$      6,840
Supplies
Adj. Bal	$      1,500
Clo. Bal	$      1,500
Prepaid insurance
Adj. Bal	$      7,583
Clo. Bal	$      7,583
Land
Adj. Bal	$    68,000
Clo. Bal	$    68,000
Building
Adj. Bal	$ 150,000
Clo. Bal	$ 150,000

Accumulated depreciation
		$          625	Adj. Bal
		$          625	Clo. Bal
Accounts payable
		$      1,450	Adj. Bal
		$      1,450	Clo. Bal
Unearned revenue
		$      5,750	Adj. Bal
		$      5,750	Clo. Bal
Wages payable
		$    11,600	Adj. Bal
		$    11,600	Clo. Bal
Interest payable
		$      1,250	Adj. Bal
		$      1,250	Clo. Bal
Notes payable
		$ 125,000	Adj. Bal
		$ 125,000	Clo. Bal
Common stock
		$ 100,000	Adj. Bal
		$ 100,000	Clo. Bal
Retained earnings
Feb 28	$    2,000	$    27,400	Adj. Bal
		$      3,668	Feb 28
		$    29,068	Clo. Bal

Tutoring service revenue
Feb 28	$ 40,590	$ 40,590	Adj. Bal
		$           -	Clo. Bal
Wages expense
Adj. Bal	$ 23,900	$ 23,900	Feb 28
Clo. Bal	$           -
Utility expense
Adj. Bal	$    3,330	$    3,330	Feb 28
Clo. Bal	$           -
Insurance expense
Adj. Bal	$        217	$        217	Feb 28
Clo. Bal	$           -
Supplies expense
Adj. Bal	$    7,600	$    7,600	Feb 28
Clo. Bal	$           -
Depreciation expense
Adj. Bal	$        625	$        625	Feb 28
Clo. Bal	$           -
Interest expense
Adj. Bal	$    1,250	$    1,250	Feb 28
Clo. Bal	$           -
Dividends
Adj. Bal	$    2,000	$    2,000	Feb 28
Clo. Bal	$           -
Income summary
Feb 28	$ 36,922	$ 40,590	Feb 28
Feb 28	$    3,668
		$           -	Clo. Bal

Part C

Staller Student Tutoring
Post-closing trial balance
February 28
Account titles	Debit	Credit
Cash	$          40,820
Accounts receivable	$            6,840
Supplies	$            1,500
Prepaid insurance	$            7,583
Land	$          68,000
Building	$        150,000
Accumulated depreciation		$                625
Accounts payable		$            1,450
Unearned revenue		$            5,750
Wages payable		$          11,600
Interest payable		$            1,250
Notes payable		$        125,000
Common stock		$        100,000
Retained earnings		$          29,068
Total	$        274,743	$        274,743