Chapter 5, Problem P5.36APGA

P5-36A Preparing a multi-step income statement, journalizing closing entries, and preparing a post-closing trail balance

Learning Objective 4, 5

1. Operating Income $67,900

The adjusted trial balance of Rechael Rey Music Company at June 30, 2018, follows:

RACHAEL REY MUSIC COMPANY Adjusted Trial Balance December 31, 2018
	Balance
Account Title	Debit	Credit
Cash	$ 4,000
Accounts Receivable	38,400
Merchandise Inventory	18,100
Office Supplies	300
Furniture	39,900
Accumulated Depreciation-Furniture		$ 8,200
Accounts Payable		13,800
Salaries Payable		850
Unearned Revenue		7,500
Notes Payable, long-term		17,000
Rey, Capital		27,350
Rey, Withdrawals	40,000
Sales Revenue		184,000
Cost of Goods Sold	85,500
Selling Expense	18,600
Administrative Expense	12,000
Interest Expense	1,900
Total	$258,700	$258,700

Requirements

1. Prepare Rachael Rey’s multi-step income statement for the year ended June 30, 2018.
2. Journalize Rachael Rey’s closing entries.
3. Prepare a post-closing trial balance as of June 30, 2018.