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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.

FINANCIAL ACCOUNTING
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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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.
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.
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