1. Prepare the closing entries (use the income summary account). 2. Prepare the post-closing (December 31, 2018) trial balance. 3. Prepare the January 1, 2019 opening trial balance. SafetyFirst Corporation Adjusted Trial Balance December 31. 2018 Workbook last modified: August 11 Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Insurance $ Debit 950,000 3,800,000 8,500,000 $ Credit 750,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. Prepare the closing entries (use the income summary account).
2. Prepare the post-closing (December 31, 2018) trial balance.
3. Prepare the January 1, 2019 opening trial balance.
SafetyFirst Corporation
Adjusted Trial Balance
2018
December 31.
Workbook last modified: August 11
Debit
Credit
Cash
950,000
Accounts Receivable
3,800,000
Allowance for Doubtful Accounts
750,000
Inventory
8,500,000
Prepaid Insurance
Notes Receivable
Equipment
16,250,000
Building
2,800,000
Land
800,000
Accumulated Depreciation: Equipment
Accumulated Depreciation: Building
Accounts Payable
7,000,000
900,000
5,600,000
Notes Payable (Short-Term)
Salaries Payable
Interest Payable
Mortgage Payable (Long-Term)
2,770,000
Common Stock
Par
$ 0.10
280,000
Additional Paid-In Capital
Retained Earnings
Dividends
10,000,000
800,000
Sales (Revenue)
35,300,000
Rent Revenue
Cost of Goods Sold (COGS)
Selling Expense
Administrative Expense
23,500,000
2,150,000
2,450,000
Interest Expense
Loss on Disposition of Equipment
Income Tax Expense
2,200,000
$ 63,400,000
$63,400,000
Transcribed Image Text:1. Prepare the closing entries (use the income summary account). 2. Prepare the post-closing (December 31, 2018) trial balance. 3. Prepare the January 1, 2019 opening trial balance. SafetyFirst Corporation Adjusted Trial Balance 2018 December 31. Workbook last modified: August 11 Debit Credit Cash 950,000 Accounts Receivable 3,800,000 Allowance for Doubtful Accounts 750,000 Inventory 8,500,000 Prepaid Insurance Notes Receivable Equipment 16,250,000 Building 2,800,000 Land 800,000 Accumulated Depreciation: Equipment Accumulated Depreciation: Building Accounts Payable 7,000,000 900,000 5,600,000 Notes Payable (Short-Term) Salaries Payable Interest Payable Mortgage Payable (Long-Term) 2,770,000 Common Stock Par $ 0.10 280,000 Additional Paid-In Capital Retained Earnings Dividends 10,000,000 800,000 Sales (Revenue) 35,300,000 Rent Revenue Cost of Goods Sold (COGS) Selling Expense Administrative Expense 23,500,000 2,150,000 2,450,000 Interest Expense Loss on Disposition of Equipment Income Tax Expense 2,200,000 $ 63,400,000 $63,400,000
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