Question

I am having a hard time solving this problem from Chapter 5 in the Book of Fundamental Accounting Principles edition 15 volume 1. thank you

Required 1. Record and post the appropriate closing entries. 2. Prepare a post-closing trial balance. Chapter 5 Cumulative Comprehension Problem: Echo Systems Echo Systems-perpetual or periodic Note: Solutions are available for both perpetual and periodic. (The first three segments of this comprehensive problem were presented in Chapters 2, 3, and 4. If those segments have not been completed, the assignment can begin at this point. However, you should use the Working Papers that accompany this text because they reflect the account balances that resulted from posting the entries required in Chapters 2, 3, and 4.) Cumulative Comprehension Working Papers CHECK FIGURES: 4. Profit = $23,198; 6. Total current assets = $162,358; Total assets $208,858 Earlier segments of this problem have described how Mary Graham created Echo Systems on October 1 2017. The company has been successful, and its list of customers has started to grow. To accommodate the growth, the accounting system is ready to be modified to set up separate accounts for each customer The following list of customers includes the account number used for each account and any balance as of the end of 2017. Graham decided to add a fourth digit with a decimal point to the 106 account number that had been used for the single Accounts Receivable account. This modification allows the existing chart of accounts to continue being used. The list also shows the balances that two customers owed as of December 31, 2017:

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Date Account Debit Credit Debit Jan 4 Wagaes Expense Wages Payable Cash $ $ 200 800 $ 1,000 Unadjsuted Debit Credit $ 110,022 41,740 6,240 3,240 9,000 2,220 $ 18,000 $ 6,000 $ 36,000 9,000 Jan 5 $ 48,000 Adjustments Adjusted Credit Debit Credit $ 110,022 $ 41,740 2,010 $ 4,230 $ 1,080 $ 2,160 6,750 $ 2,250 $ 252 $ 1,968 18,000 $ 1,500 7,500 $ 36,000 $ 2,250 11,250 Cash Mary Garahm, Capital $ 48,000 Jan 7 $ 11,200 Inventory Accounts Payable $ 11,200 Jan 9 $ 3,000 Cash Accounts Receivable $ 3,000 $ 1,400 1,400 Jan 11 $ 182,610 $ 182,610 Unearned Computer Service Revenue Accounts Receivable Comuter Service Revenue $ $ 3,000 9,000 Beginning For the Month Account Debit Credit Debit Credit Cash $ 89,090 $ 20,932 Accounts Receivable 5,700 $ 36,040 Computer Supplies $ 1,440 $ 4,800 Prepaid Insurance 3,240 Prepaid Rent $ 2,250 $ 6,750 Inventory $ 2,220 Office Equipment $ 18,000 Accumulated Depreciation Office Equipment 6,000 Computer Equipment $ 36,000 Accumulated Depreciation-Computer Equipment 9,000 Accounts Payable 2,310 $ 2,310 Wages Payable 800 $ 800 Unearned Computer Service Revenue 3,000 $ 3,000 Mary Graham, Capital $ 134,610 $ 48,000 Mary Graham, Withdrawals $ 9,600 Computer Services Revenue $ 38,320 Sales Revenue $ 34,440 Sales Return and Allowance 800 Sales Disocunt Cost of Goods Sold 25,324 Wages Expense 3,800 Advertising Expense 1,600 Mileage Expense 1,000 Repairs Expense, Computer 1,720 Charitable Donations Expense Depreciation Expense-Office Equipment Depreciation Expense-Computer Equipment Insurance Expense Rent Expense Computer Supplies Expense $ 9,600 $ 9,600 $ 12,000 $ $ 38,320 34,440 $ $ 38,320 34,440 Jan 13 $ 8,400 Accounts Receivable Sales Revenue $ 8,400 64 $ $ $ $ 252 1,400 Jan 13 $ 800 64 25,324 3,800 1,600 1,000 1,720 6,720 Cost of Goods Sold Inventory 800 64 25,576 5,200 1,600 1,000 1,720 $ 6,720 Jan 15 $ 1,400 Inventory Cash $ 1,400 Jan 16 $ 6,000 Cash Computer Service Revenue $ 6,000 1,500 2,250 1,080 6,750 2,010 1,500 2,250 1,080 6,750 2,010 Jan 17 $ 11,200 Accounts Payable Inventory Cash $ $ 112 11,088 Total $ 155,720 $ 155,720 $ 120,760 $ 120,760 $ 270,370 $ 270,370 $ 15,242 $ 15,242 $ 275,520 $ 275,520

Jan 20 $ 800 Sales Return and Allowance Accounts Receivable $ 800 34,440 Jan 24 $ 792 Accounts Payable Inventory $ 792 $ 800 64 $ $ $ $ Jan 26 $ -864 33,576 38,320 71,896 16,000 Inventory Accounts Payable $ 16,000 Jan 26 $ 11,600 Accounts Receivable Sales Revenue Income Statement Revneue: Sales Revenue Less: Sales Return and Allowance $ Net Sale Computer Services Revenue Total Revenue Less: Expenses Cost of Goods Sold $ Wages Expense $ Advertising Expense Mileage Expense Repairs Expense, Computer $ Charitable Donations Expense Depreciation Expense-Office Equipment Depreciation Expense-Computer Equipment $ Insurance Expense Rent Expense Computer Supplies Expense $ $ 11,600 25,576 5,200 1,600 1,000 1,720 Jan 26 $ 9,280 Cost of Goods Sold Inventory $ 9,280 Jan 31 Wagaes Expense $ 2,000 Cash $ 2,000 1,500 2,250 1,080 6,750 2,010 Feb1 $ 6,750 Prepaid Rent Cash $ 6,750 Feb 3 $ 15,208 Accounts Payable Inventory Cash Total operating Expense Net income $ $ -48,686 23,210 $ $ 152 15,056 Statement of change in equity: Feb 5 $ 1,600 Advertising Expense Cash $ 1,600 Beginning Balance $ 182,610 Feb 11 $ 9,000 Cash Accounts Receivable $ 9,000 Add: Net Income Less: Withdrawal Ending Balance $ $ $ 23,210 -9,600 196,220 Feb 15 $ 9,600 Mary Graham, withdrawals Cash $ 9,600 Feb 23 Accounts Receivable Sales Revenue $ 6,400 $ 6,400 $ $ Feb 23 $ 5,120 Cost of Goods Sold Inventory $ 5,120 110,022 41,740 4,230 2,160 2,250 1,968 162,370 Feb 26 $ 1,600 Wagaes Expense Cash $ 1,600 Balance Sheet Assets: Current assets Cash Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent Inventory Total Current assets Office Equipment $ Accumulated Depreciation Office Equipment $ Computer Equipment $ Accumulated Depreciation-Computer Equipn $ Total Assets Liabilities: Accounts Payable Wages Payable Unearned Computer Service Revenue Total Liabilities $ $ $ 18,000 -7,500 $ 36,000 -11,250 $ $ Feb 27 $ 600 10,500 Mileage Expense Cash $ 600 24,750 197,620 Mar 8 $ 4,800 Computer Supplies Accounts Payable $ 4,800 Mar 9 Cash Sales Discount Accounts Receivable $ $ 6,336 64 $ $ $ $ - 1,400 - 1,400 $ 6,400 Mar 11 $ 1,720 Repairs Computer Cash Owner's Capital: Mary Graham, Capital $ 1,720 $ 196,220 Mar 16 $ 8,520 Total Liabilities and equity $ 197,620 Cash Computer Service Revenue $ 8,520

Mar 19 Accounts Payable $ 7,110 Cash $ 7,110 Mar 24 $ 11,800 Accounts Receivable Computer Service Revenue $ 11,800 Mar 25 $ 3,600 Accounts Receivable Sales Revenue $ 3,600 Mar 25 $ 2,004 Cost of Goods Sold Inventory $ 2,004 Mar 30 $ 4,440 Accounts Receivable Sales Revenue $ 4,440 Mar 30 $ 2,200 Cost of Goods Sold Inventory $ 2,200 $ 400 Mar 31 Mileage Expense Cash $ 400 Adjusting Entries: Date Account Debit Credit $ 2,010 Computer supplies Expense Computer supplies ($1,440+$4,800-$4,230) $ 2,010 $ 1,080 Insurance Expense Prepaid Insurance ($4,320/12*3) $ 1,080 $ 1,400 Wages Expense Wages Payable $ 1,400 $ 6,750 Rent Expense Prepaid Rent $ 6,750 $ 2,250 Depreciation Expense Accumulated Depreciation-Computer $36,000/4 $ 2,250 Depreciation Expense $ 1,500 Accumulated Depreciation Office equipment $18,000/3 $ 1,500 $ 252 Cost of Goods Sold Inventory $ 252