Question

hackle Locksmiths, Inc.
Adjusted Trial Balance
At December 31, 2018
Account	Debit	Credit
Cash	$1,720,400
Accounts Receivable	792,000
Supplies	210,000
Prepaid Insurance	200,000
Equipment	420,000
Accumulated Depreciation—Equipment		$33,000
Accounts Payable		1,280,000
Unearned Service Revenue		39,200
Wages Payable		250,000
Interest Payable		85,000
Notes Payable		260,000
Common Stock		1,300,000
Retained Earnings		0
Dividends	10,000
Service Revenue		2,093,300
Wage Expense	1,120,000
Utilities Expense	88,900
Selling Expense	64,200
Administrative Expense	189,000
Repairs Expense	66,000
Interest Expense	55,000
Insurance Expense	135,000
Supplies Expense	210,000
Depreciation Expense—Equipment	60,000
Total	$5,340,500	$5,340,500

a.	Journalize and post the necessary closing entries. Omit explanations.
b.	Prepare a​ post-closing trial balance as of December 31.

Requirement a. Journalize and post the necessary closing entries. Omit explanations.

​First, journalize the necessary closing entries​ (CJE). ​(Record debits​ first, then credits. Exclude explanations from any journal​ entries.)

​CJE1: Start by closing revenues.

Account	December 31, 2018

​CJE2: Close expenses for the period.

Account	December 31, 2018

​CJE3: Close income summary.

Account	December 31, 2018

​CJE4: Close dividends.

Account	December 31, 2018

​Now, post the closing entries to the​ t-accounts to obtain the​ post-closing balances.​ T-accounts have been opened using the balances from the adjusted trial balance. Use the closing entry numbers as posting references to post each closing entry to the relevant​ accounts, then compute the ending balance of each account. Label the ending balances with End.

Bal.

​(For accounts with a​ $0 ending​ balance, select ​"End.

Bal.​"

and enter​ "0" on the normal balance side of the​ t-account.)

Review the closing entries you prepared above.

Requirement b. Prepare a​ post-closing trial balance as of December 31. ​(Exclude any accounts with a zero balance from the trial​ balance.)

Answer 1

The answer has been presented in the supporting sheets. All the closing journal entries has been passed and posted in ledger. and post closing trial balance has been completed. For detailed answers refer to the supporting sheets.