Question

Bears, Inc. is attempting to close its books. For each account listed below, identify the account type (i.e. asset, liability, etc.), indicate whether it would be included in a closing entry (and if so provide the closing entry), and indicate if it would appear on a post-closing trial balance (and explain why or why not). a. Accumulated Depreciation - Furniture b. Office Supplies C. Interest Expense d. Retained Earnings e. Service Revenue f. Unearned Revenue g. Accounts Payable h. Dividends

This first image above is what I'm trying to answer. The second sentence is the objective. The below images are to help identify the closing entry.

This image is the information that was recorded.

And then this image shows transaction that weren't on the official trial balance.

Answer 1

Account * a Accumulated depreciation - Equipment b Office Supplies c Interest expense d Retained earnings e Service revenue f Unearned revenue & Accounts payable h Dividends Included Type of in Closing Account entry? Included in post closing Trial balance ? Asset Yes Yes, Part of Contra asset account Asset Yes Yes, Part of Current assets Expense No No, expense is closed to Income Summary Equity Yes Yes, Part of Equity Income Yes No, Income is closed to Income Summary Liability Yes Yes, Part of Current liabilities Liability Yes, Part of Current liabilities Equity Yes No, Dividend is closed to Retained earnings *Contra asset account No Credit Debit $4,100 $1,400 $1,300 $900 $500 Closing entries Account Titles and Explanation Income Summary Account Rent expense Salaries expense Depreciation expense Office supplies expense (To close expense account to income summary) Service revenue Income summary Account (To close income account to income summary) Income Summary Account Retained Earnings (To transfer net income to Retained earnings) Retained Earnings Dividend (To close dividend to Retained Earnings) $15,900 10600+4500+800 $15,900 $11,800 $11,800 (Revenue - Expenses) $1,000 $1,000