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
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
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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