Practice f. Prepare a post-closing trial balance for Year 1.SMITH TRAINING COMPANYPost-Closing Trial BalanceDecember 31, Year 1Account TitlesDebitCreditTotals [The following information applies to the questions displayed below.]The following transactions pertain to Smith Training Company for Year 1:Jan. 30 Established the business when it acquired $52,000 cash from the issue of commoFeb.1 Paid rent for office space for two years, $33,000 cash.Apr. 10 Purchased $830 of supplies on account.1 Received $21,500 cash in advance for services to be provided over the next yea20 Paid $623 of the accounts payable from April 10.JulyAug. 15 Billed a customer $9,400 for services provided during August.Sept.15 Completed a job and received $2,700 cash for services rendered.1 Paid employee salaries of $34,000 cash.15 Received $9,100 cash from accounts receivable.Oct.Nov. 16 Billed customers $31,500 for services rendered on account.1 Paid a dividend of $1,500 cash to the stockholders.31 Adjusted records to recognize the services provided on the contract of July 1.31 Recorded $2,150 of accrued salaries as of December 31.31 Recorded the rent expense for the year. (See February 1.)31 Physically counted supplies; $80 was on hand at the end of the period.Dec.

A post-closing trial balance is a trial balance that is prepared after all the revenue and expenses accounts of the period have been closed and their balances have been transferred to retained earnings account. Hence, the post-closing trial balance contains the balance of those accounts which have a non-zero balance, and which will appear on the balance sheet. This trial balance is prepared to verify whether the sum of all the accounts having debit balances is equal to the sum of all the accounts having credit balances.Working notes: Compute the prepaid rent adjusted for the current year or Year 1: Prepaid Rent Adjusted in Year 1=Prepaid RentNo. of Months Prepaid Rent Relates to×No. of Months Elapsed=$33,00024×11=$15,125 Calculate the supplies used in Year 1: Supplies used in Year 1=Supplies Purchased-Supplies on Hand=$830-$80=$750 Compute the unearned service revenue adjusted in Year 1: Unearned Service Revenue Adjusted in Year 1=Unearned Service RevenueNo. of Months Revenue Relates to×No. of Months Elapsed=$21,50012×6=$10,750Prepare the journal entries for Year 1:Prepare the T-accounts:Prepare the post-closing trial balance for Year 1: The formula snip is as follows: The result of the above is as follows: