Question

balance as of the end of its fiscal year is shown below. E4-8 Okabe Company ended its fiscal year on July 31, 2017. The company's adjusted trial (b) Prepare a post-closing trial balance. Hosing post- OKABE COMPANY Adjusted Trial Balance July 31, 2017 Credit Debit No. Account Titles 101 Cash $ 9,840 112 Accounts Receivable 8,780 157 Equipment 15,900 $ 7,400 158 Accumulated Depreciation-Equip. 201 Accounts Payable i4,220 1,800 208 Unearned Rent Revenue 301 Owner's Capital 45,200 306 Owner's Drawings 16,000 400 Service Revenue 429 Rent Revenue 711 Depreciation Expense of 8,000 726 Salaries and Wages Expense 732 Utilities Expense 14,900 $129,120 $129,120 0 64,000 6,500 55,700 Instructions (a) Prepare the closing entries using page J15. (b) Post to Owner's Capital and No. 350 Income Summary accounts. (Use the three-column form.) (c) Prepare a post-closing trial balance at July 31.

Answer 1

A. General Journal - J15

Date	Account Title and Explanation	Red.	Debit	Credit
July.31	Service Revenue	400	$64,000
	Rent Revenue	429	$6,500
	Income Summary	350		$70,500
	(To close revenue accounts)
July.31	Income Summary	350	$78,600
	Salaries and Wages Expense	726		$55,700
	Utilities Expenses	732		$14,900
	Depreciation Expanse	711		$8,000
	(To close Expense Account)
July.31	Owner's Capital ($78,600-$70,500)		$8,100
	Income Summary	350		$8,100
	(To close net loss on capital )
July.31	Owners Capital	350	$16,000
	Owners Drawings	306		$16,000
	(To close drawings to capital)

B. Owners Capital

Date	Explanation	Red.	Debit	Credit	Balance
July.31	Balance				$45,200
July.31	Close Net Loss	J15	$8,100		$37,100
July.31	Close Drawings	J15	$16,000		$21,100

Income Summary - No.350

Date	Explanation	Ref.	Debit	Credit	Balance
July.31	Close Revenue	J15		$70,500	$70,500
July.31	Close Expense	J15	$78,600		$(8,100)
July.31	Close Net Loss	J15		$8,100	$0

C. Okabe Company Post Closing Trail Balance July.31.2017

	Debit	Credit
Cash	$9,840
Accounts Receivable	$8,780
Equipment	$15,900
Accumulated Depreciation -Equipment		$7,400
Accounts Payable		$4,220
Unearned Rent Revenue		$1,800
Owners Capital		$21,100
Total	$34,520	$34,520