Explanation Trial balance Trial balance is the tabular presentation of all debit and credit balances of accounts; debit and credit sides of trial balances are equal due to double entry system of preparation of accounts. Post closing trial balance: Particulars Debit($) Credit($) Cash 833,000 Accounts Receivable 179,000 Accounts Payable 150,500 Note Payable 80,000 Unearned service revenue 12,000 Prepaid Insurance 13,000 Equipment 350,000 Common Stock 1,000,000 Supplies 83,000 Accumulated depreciation 30,000 Wages payable 24,000 Prepaid rent 30,000 Retained earnings 191,500 Total 1,488,000 1,488,000 Table (1) Working Notes: Computation of Post closing trial balance: Particulars Debit($) Credit($) Cash 833,000 Accounts Receivable 179,000 Accounts Payable 150,500 Note Payable 80,000 Unearned service revenue 12,000 Prepaid Insurance 13,000 Equipment 350,000 Common Stock 1,000,000 Supplies 83,000 Accumulated depreciation 30,000 Wages payable 24,000 Prepaid rent 30,000 Retained earnings 191,000 Dividends ( 12 , 000 − 12 , 000 ) Sales ( 1 , 000 , 500 − 1 , 000 , 500 ) Wages ( 320 , 000 − 320 , 000

3rd Edition

ISBN: 9780137391707

Author: GORDON

Publisher: PEARSON

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Chapter 4, Problem 4.24E

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To prepare: The post closing trial balance.

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Chapter 4, Problem 4.23E

Chapter 4, Problem 4.1P

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The post closing trial balance .

Solution Summary: The author explains that the post closing trial balance is the tabular presentation of all debit and credit balances of accounts.

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To prepare: The post closing trial balance.

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