Friday, March 21, 2014

EX 4-19 Post-closing trial balance

An accountant prepared the following post-closing trial balance:
Gypsy Treasures Co.
Post-Closing Trial Balance
March 31, 2012

                                                                         Debit          Credit
                                                                      Balances       Balances
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . .  18,000
Accounts Receivable. . . . . . . . . . . . . . . . . . . 31,000
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5,500
Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000
Accumulated Depreciation—Equipment . . . . . . . .19,000
Accounts Payable . . . . . . . . . . . . . . . . . . . . . 11,000
Salaries Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000
Unearned Rent . . . . . . . . . . . . . . . . . . . . . .6,000
Leticia Aloni, Capital . . . . . . . . . . . . . . . . . . 92,500
                                                                     177,500        81,500

Prepare a corrected post-closing trial balance. Assume that all accounts have normal balances and that the amounts shown are correct.

Answer:
GYPSY TREASURES CO. 
Post-Closing Trial Balance 
March 31, 2012 
                                                                       Debit          Credit
                                                                    Balances      Balances
Cash ..............................................18,000
Accounts Receivable ...............................31,000
Supplies...........................................5,500
Equipment...........................................75,000
Accumulated Depreciation—Equipment .......................... 19,000
Accounts Payable ................................................... 11,000
Salaries Payable.......................................................1,000
Unearned Rent........................................................ 6,000
Leticia Aloni, Capital............................................... 92,500
                                                                    129,500         129,500


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