Question

Required information PA4-1 Preparing a Trial Balance, Closing Journal Entry, and Post-Closing Trial Balance [LO 4-3, LO 4-5) [The following information applies to the questions displayed below.] Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debitor credit balances. Assume the year ended on September 30, 2018 Accounts Payable Accounts Receivable Accumulated Depreciation Cash Common Stock Deferred Revenue Depreciation Expense Equipment Income Tax Expense Interest Revenue Notes Payable (long-term) Notes Payable (short-term) Prepaid Rent Rent Expense Retained Earnings Salaries and Wages Expense Service Revenue Supplies Supplies Expense Travel Expense s 605 305 905 305 205 205 305 3,205 305 105 205 505 105 405 1,505 2,205 6,215 205 2.605

Answer 1

Closing Entries Sep.30 Service Revenue Interest Revenue Income summary $ 6,215 $ 105 $ 6,320 Sep.30 $ 6,030 Starbooks Corporation Trial Balance At September 30,2018 Account Title Debit Credit Cash $ 305 Accounts receivable $ 305 Supplies $ 505 Prepaid rent $ 105 Equipment $ 3,205 Accumulated Depreciation $ 905 Accounts payable $ 605 Deferred revenue $ 205 Notes payable (short term) $ 505 Notes payable (long term) $ 205 Common Stock $ 205 Retained earnings $ 1,505 Depreciation expense $ 305 Income tax expense $ 305 Interest Revenue $ 105 Rent expense $ 405 Salaries and wages expense $ 2,205 Service Revenue $ 6.215 Supplies expense $ 205 Travel expense $ 2,605 Totals $10,455 $10,455 Income summary Depreciation expense Income tax expense Rent expense Salaries and wages expense Supplies expense Travel expense $ 305 $ 305 $ 405 $ 2,205 $ 205 $ 2,605 Sep.30 $ 290 (6320-6030) Income summary Retained earnings $ 290 105 Starbooks Corporation Post - Closing Trial Balance At September 30,2018 Account Title Debit Credit Cash $ 305 Accounts receivable $ 305 Supplies $ 505 Prepaid rent $ Equipment $ 3,205 Accumulated Depreciation $ 905 Accounts payable $ 605 Deferred revenue $ 205 Notes payable (short term) $ 505 Notes payable (long term) $ 205 Common Stock $ 205 Retained earnings $ 1,795 (1505+290) Totals S4,425 $4,425