Question

This is the trial balance

Anne Aile Trial Balance # Credit Debit $12.133 6.950 612 17,280 288 13,680 Description Cash Notes Receivable Accounts Receivable Allowance for Uncollectible Accounts Supplies Prepaid Insurance Equipment Accumulated Depreciation Equipment Notes Payable Accounts Payable Unearned Service Revenue Salaries and Wages Payable Interest Payable Owner's Capital Owner's Withdrawals Income Summary Service Revenue Advertising Expenses Bad Debt Expense Depreciation Expense Insurance Expense Interest Expense Office Expense Rent Expense Salaries and Wages Expenses Supplies Expense Utilities Expense 20,000 3,000 9,620 288 515 680 1800 330 Total $ 43,588 $ 43,588

I need verification for Income stamente, owner equity(not sure how to get it) and help completing balance sheet.

Also I have a quetion is post-closing trial balance the same as trial balance.? ( Whats the difference?)

Please and thanks

Answer 1

1. Income Statement -

Anne Aile Income Statement Service Revenue $ 9,620 Expenses: Depreciation Expense $ 288 Office Expense $ 515 Rent Expense $ 680 Salaries and Wages Expense $ 1,800 Supplies Expense $ 330 Total Expenses $ 3,613 Net Income $ 6,007

2. Owner's Equity Statement -

Anne Aile Owner's Equity Statement Owner's Capital, Beginning $ 20,000 (+) Net Income $ 6,007 (-) Owner's Withdrawal $ (3,000) $ 3,007 Owner's Capital, Ending $ 23,007

3. Balance Sheet -

Anne Aile Balance Sheet Assets Cash Accounts Receivable Supplies Total Current Assets $ 12,133 $ 6,950 $ 612 $ 19,695 Equipment $ 17,280 Accumulated Depreciation - Equipment $ (288) $ 16,992 Total Assets $36,687 Liabilities Accounts Payable $ 13,680 Total Liabilities $ 13,680 Owner's Equity Owner's Capital $ 23,007 Total Equity $ 23,007 Total Liabilities & Owner's Equity $36,687

4. Post Closing Trial Balance -

Anne Aile Post Closing Trial Balance Cash $ 12,133 Accounts Receivable $ 6,950 Supplies $ 612 Equipment $ 17,280 Accumulated Depreciation - Equipment Accounts Payable Owner's Capital $ 288 $ 13,680 $ 23,007 Total $36,975 $ 36,975

Trial Balance -

Trial Balance is divided in to 3 parts

1. Unadjusted Trial Balance

2. Adjusted Trial Balance

3. Post-Closing Trial Balance

1. Unadjusted Trial Balance -

Unadjusted Trial Balance is prepared when we post journal entries into trial balance. It he trial balance before making any adjustments to it and before closing any accounts for finalization.

All the transactions that takes into the financial year are posted to the trail balance.

2. Adjusted Trial Balance -

Adjusted Trial Balance is when we make adjustments entries like supplies expense, insurance expenses expired, Rent Expired Unearned revenue earned and depreciation incurred for the financial year. After making adjustments in the journal we post it into trial balance into the specific head. We will get the adjusted Trial Balance.

3. Post-Closing Trial Balance -

Some accounts in the trial balance are temporary in nature those accounts are not posted to the balance sheet at the end of the year. Before making balance sheet we have to close those accounts and post those temporary balances into their respective heads.

Revenue accounts and all the expense accounts 1st posted to the income Summary Account and then balance between them can be transfer to Retained Earnings.

After Revenue and Expenses also dividends account needs to be transfer to retained earnings account

Conclusion -

Trial Balance and Post - Closing Trial Balance is not same.