Question

Required information [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 debit or 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 $ 590 290 890 290 190 190 290 3,190 290 90 190 490 90 390 1,490 2,190 6,170 490 190 2,590

part a.

part b.

part c.

Answer 1

Part a.

STARBOOKS CORPORATION
Adjusted trail balance
For the year ended September 30,2018
Account titles	Debit	Credit
cash	$              290
Accounts receivable	$              290
Supplies	$              490
Prepaid rent	$                90
Equipment	$          3,190
Accumulated depreciation		$              890
Accounts payable		$              590
Deferred Revenue		$              190
Notes payable( short-term)		$              490
Notes payable( long-term)		$              190
Common stock		$              190
Retained earnings		$          1,490
Service revenue		$          6,170
Interest revenue		$                90
Travel expense	$          2,590
Salaries and wages expense	$          2,190
Rent expense	$              390
Depreciation expense	$              290
Supplies expense	$              190
Income tax expense	$              290
Total	$        10,290	$        10,290

Part b.

Date	General Journal	Debit	Credit
Sep 30,2018	Sales revenue	$          6,170
	Interest revenue	$                90
	Income Summary		$          6,260
	(To close Income account )
Sep 30,2018	Income Summary	$          5,940
	Travel expense		$          2,590
	Salaries and wages expense		$          2,190
	Rent expense		$              390
	Depreciation expense		$              290
	Supplies expense		$              190
	Income tax expense		$              290
	(To close Expense account )
Sep 30,2018	Income Summary [6260-5940]	$              320
	Retained Earnings		$              320
	(To close income summary )

Part c.

STARBOOKS CORPORATION
Post closing trail balance
For the year ended September 30,2018
Account titles	Debit	Credit
cash	$              290
Accounts receivable	$              290
Supplies	$              490
Prepaid rent	$                90
Equipment	$          3,190
Accumulated depreciation		$              890
Accounts payable		$              590
Deferred Revenue		$              190
Notes payable( short-term)		$              490
Notes payable( long-term)		$              190
Common stock		$              190
Retained earnings [1490+320]		$          1,810
Service revenue
Interest revenue
Travel expense
Salaries and wages expense
Rent expense
Depreciation expense
Supplies expense
Income tax expense
Total	$          4,350	$          4,350