Question

I can't figure out how to do the post closing entry & balance sheet. Can someone help? (closing entry last one)

1 Post-Closing Trial Balance Summary 2 As of January 31, 2019 Credit Debit 145,200.00 165,000.00 58,200.00 4,000.00 8,000.00 40,000.00 27,500.00 5 Description 6 Cash 7 Accounts Receivable 8 Inventory 9 Office Supplies 10 Van 11 Furniture & Fixtures 12 Computer Equipment 13 Accum. Dep. - F & F 14 Accum. Dep. - Comp. Eqp 15 Accum. Dep. - Van 16 Accounts Payable 17 Salaries Payable 18 Interest Payable 19 Notes Payable 20 Common Stock 21 Retained Earnings 22 Total 3,500.00 2,350.00 100.00 14,000.00 4,500.00 75.00 15,000.00 187,000.00 53,175.00 279,700.00 447,900.00

Answer 1

The closing journal entries are shown as follows:-

Journal Entries (Amounts in $)

Date	Account Titles and Explanation	Debit	Credit
31-Jan	Service Revenue	7,500.00
	Sales Revenue	205,000.00
	Income Summary		212,500.00
	(To close the revenue accounts)
31-Jan	Income Summary	148,825.00
	Cost of Goods Sold		102,500.00
	Depreciation Expense		2,450.00
	Interest Expense		75.00
	Salary and Wage Expense		28,300.00
	Maintenance Expense		3,500.00
	Supplies Expense		12,000.00
	(To close the expense accounts)
31-Jan	Income Summary (212,500-148,825)	63,675.00
	Retained Earnings		63,675.00
	(To close the income summary account)
31-Jan	Retained Earnings	10,500.00
	Dividend		10,500.00
	(To close the dividend account)

The Balance Sheet of the company as of Jan 31, 2019 is shown as follows:-

  Balance Sheet

As of January 31, 2019 (Amounts in $)

Assets
Current Assets
Cash	145,200.00
Accounts Receivable	165,000.00
Inventory	58,200.00
Office Supplies	4,000.00
Total Current Assets		372,400.00
Non Current Assets
Van, Gross	8,000.00
Accum. Dep.- Van	(100.00)
Van, net		7,900.00
Furniture and Fixtures	40,000.00
Accum. Dep.- F & F	(3,500.00)
Furniture and Fixtures, net		36,500.00
Computer Equipment	27,500.00
Accum. Dep.- Comp. Eqp	(2,350.00)
Computer Equipment, net		25,150.00
Total Assets		441,950.00
Liabilities and Stockholder's Equity
Current Liabilities
Accounts Payable	14,000.00
Salaries Payable	4,500.00
Interest Payable	75.00
Notes Payable	15,000.00
Total Current Liabilities		33,575.00
Stockholders' Equity
Common Stock	187,000.00
Retained Earnings (see note below)	221,375.00
Total stockholders' equity		408,375.00
Total Liabilities and Stockholders' Equity		441,950.00

Note:-

Calculation of Retained Earnings Ending Balance (Amounts in $)

Retained Earnings Beginning Balance	168,200.00
Add: Net Income for the year	63,675.00
Less: Dividends paid	10,500.00
Retained Earnings Ending Balance	221,375.00