Question

The Adjusted Trial Balance section of the worksheet for Van Zant Janitorial Supplies follows. The owner made no additional investments during the year.

Accounts		Debit			Credit
Cash	$	19,100
Accounts Receivable		60,300
Allowance for Doubtful Accounts				$	170
Merchandise Inventory		186,700
Supplies		7,190
Prepaid Insurance		3,110
Equipment		51,500
Accumulated Depreciation—Equipment					18,300
Accounts Payable					9,200
Social Security Tax Payable					1,440
Medicare Tax Payable					360
Steven Van Zant, Capital					279,540
Steven Van Zant, Drawing		74,500
Income Summary		180,500			186,700
Sales					775,500
Sales Returns and Allowances		14,900
Purchases		487,400
Freight In		5,900
Purchases Returns and Allowances					9,000
Purchases Discounts					5,800
Rent Expense		34,300
Telephone Expense		6,290
Salaries Expense		123,640
Payroll Taxes Expense		12,200
Supplies Expense		7,100
Insurance Expense		1,610
Depreciation Expense—Equipment		8,600
Uncollectible Accounts Expense		1,170
Totals	$	1,286,010		$	1,286,010

Prepare a postclosing trial balance for the firm on December 31, 2019.

Answer 1

Answer

• Requirement : Post Closing Trial Balance

To prepare Post closing trial balance from adjusted trial balance,
--all revenues and expense account balances are taken to Capital account,
--income summary and drawings are also closed to capital account.
--Hence, keep all the assets, liabilities and equity account, and put the difference between ‘debit and credit’ totals in the ‘Capital account balance.

• Post closing Trial Balance

Accounts	Debit	Credit
Cash	$19,100
Accounts Receivable	$60,300
Allowance for Doubtful Accounts		$170
Merchandise Inventory	$186,700
Supplies	$7,190
Prepaid Insurance	$3,110
Equipment	$51,500
Accumulated Depreciation—Equipment		$18,300
Accounts Payable		$9,200
Social Security Tax Payable		$1,440
Medicare Tax Payable		$360
Steven Van Zant, Capital		$298,430
Totals	$327,900	$327,900