Laker Incorporated's fiscal year-end is December 31, 2021. The following is an adjusted trial balance as of December 31. Accounts Debit Credit Cash $10,400 Supplies 31,000 Prepaid Rent 22,000 Accounts Payable $1,400 Notes Payable 14,000 Common Stock 32,000 Retained Earnings 7,400 Dividends 2,400 Service Revenue 55,600 Salaries Expense 18,400 Advertising Expense 11,400 Rent Expense 8,400 Utilities Expense 6,400 Totals $110,400 $110,400 Required: 1. Prepare the necessary closing entries. 2. Calculate the ending balance of Retained Earnings. 3. Prepare a post-closing trial balance.
Laker Incorporated's fiscal year-end is December 31, 2021. The following is an adjusted trial balance as of December 31. Accounts Debit Credit Cash $10,400 Supplies 31,000 Prepaid Rent 22,000 Accounts Payable $1,400 Notes Payable 14,000 Common Stock 32,000 Retained Earnings 7,400 Dividends 2,400 Service Revenue 55,600 Salaries Expense 18,400 Advertising Expense 11,400 Rent Expense 8,400 Utilities Expense 6,400 Totals $110,400 $110,400 Required: 1. Prepare the necessary closing entries. 2. Calculate the ending balance of Retained Earnings. 3. Prepare a post-closing trial balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Laker Incorporated's fiscal year-end is December 31, 2021. The following is an adjusted trial
balance as of December 31.
Accounts
Debit
Credit
Cash
$10,400
Supplies
31,000
Prepaid Rent
22,000
Accounts Payable
$1,400
Notes Payable
14,000
Common Stock
32,000
Retained Earnings
7,400
Dividends
2,400
Service Revenue
55,600
Salaries Expense
18,400
Advertising Expense 11,400
Rent Expense
8,400
Utilities Expense
6,400
Totals
$110,400 $110,400
Required:
1. Prepare the necessary closing entries.
2. Calculate the ending balance of Retained Earnings.
3. Prepare a post-closing trial balance.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4b328391-e1b1-4c61-aa30-2317a282e793%2F47c7b55e-b037-46fc-b420-5e107396e669%2F73vdu4s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Laker Incorporated's fiscal year-end is December 31, 2021. The following is an adjusted trial
balance as of December 31.
Accounts
Debit
Credit
Cash
$10,400
Supplies
31,000
Prepaid Rent
22,000
Accounts Payable
$1,400
Notes Payable
14,000
Common Stock
32,000
Retained Earnings
7,400
Dividends
2,400
Service Revenue
55,600
Salaries Expense
18,400
Advertising Expense 11,400
Rent Expense
8,400
Utilities Expense
6,400
Totals
$110,400 $110,400
Required:
1. Prepare the necessary closing entries.
2. Calculate the ending balance of Retained Earnings.
3. Prepare a post-closing trial balance.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education