For each account listed, identify whether the account would appear on the post-closing trial balance. Indicate either yes or no.
Post closing trial balance is prepared after recording the closing entries. It only reports the permanent account of the business.
Dividends are the part of the profit allocated to the shareholders. It is temporary account, hence it is closed by recording closing entry, and not reported in post closing trial balance.
For each account listed, identify the category in which it would appear on a classified balance sheet. a. Office Supplies b. Interest Payable c. Retained Earnings d. Copyrights e. Land f. Accumulated Depreciation—Furniture g. Land (held for long-term investment purposes) h. Unearned Revenue i. Notes Payable (due in six years)
Benson Auto Repair had the following account balances after adjustments. Assume all accounts had normal balances.
Cash $ 4,000 Common Stock $ 20,000
Accounts Receivable 3,200 Retained Earnings, January 1 15,700
Prepaid Rent 1,900 Dividends 2,100
Office Supplies 3,000 Service Revenue 1,600
Equipment 34,800 Depreciation Expense—Equipment 300
Accumulated Depreciation—Equipment 1,600 Salaries Expense 800
Accounts Payable 5,400 Rent Expense 500
Notes Payable (long-term) 7,000 Utilities Expense 600
Supplies Expense 100
14. Prepare the closing entries for Benson at December 31.
15. What is the balance of Retained Earnings after closing entries have been recorded? (Use a T-account to determine the balance.)
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