ElecBooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Amounts in the list of accounts are rounded to the nearest dollar. Assume the year ended on September 30, 2020. Accounts Payable $ 341 Accounts Receivable 231 Accrued Liabilities 394 Accumulated Depreciation 340 Cash 347 Contributed Capital 191 Depreciation Expense 380 General and Administrative Expenses 397 Income Tax Expense 342 Interest Revenue 132 Long-Term Debt 236 Other Current Assets 111 Other Long-Lived Assets 581 Other Operating Expenses 237 Prepaid Expenses 134 Property and Equipment 2,262 Retained Earnings 1,565 Selling Expenses 2,725 Service Revenues 6,769 Short-Term Bank Loan 516 Store Operating Expenses 2,286 Supplies 666 Deferred Revenue 215 Required: 1-a. Prepare an adjusted trial balance at September 30, 2020. 1-b. Is the Retained Earnings balance of $1,565 the amount that would be reported on the balance sheet as of September 30, 2020? multiple choice Yes No 2. Prepare the closing entry required at September 30, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 3. Prepare a post-closing trial balance at September 30, 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

ElecBooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Amounts in the list of accounts are rounded to the nearest dollar. Assume the year ended on September 30, 2020.


Accounts Payable	$	341
Accounts Receivable		231
Accrued Liabilities		394
Accumulated Depreciation		340
Cash		347
Contributed Capital		191
Depreciation Expense		380
General and Administrative Expenses		397
Income Tax Expense		342
Interest Revenue		132
Long-Term Debt		236
Other Current Assets		111
Other Long-Lived Assets		581
Other Operating Expenses		237
Prepaid Expenses		134
Property and Equipment		2,262
Retained Earnings		1,565
Selling Expenses		2,725
Service Revenues		6,769
Short-Term Bank Loan		516
Store Operating Expenses		2,286
Supplies		666
Deferred Revenue		215

Required:
1-a. Prepare an adjusted trial balance at September 30, 2020.

1-b. Is the Retained Earnings balance of $1,565 the amount that would be reported on the balance sheet as of September 30, 2020?

multiple choice

2. Prepare the closing entry required at September 30, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3. Prepare a post-closing trial balance at September 30, 2020.

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