PA4-1 Preparing a Trial Balance, Closing Journal Entry, and Post-Closing Trial Balance [LO 4-3, LO...
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Accounting
PA4-1 Preparing a Trial Balance, Closing Journal Entry, and Post-Closing Trial Balance [LO 4-3, LO 4-5]
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Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Assume the year ended on September 30, 2018.
Accounts Payable
$
600
Accounts Receivable
300
Accumulated Depreciation
900
Cash
300
Common Stock
200
Deferred Revenue
200
Depreciation Expense
300
Equipment
3,200
Income Tax Expense
300
Interest Revenue
100
Notes Payable (long-term)
200
Notes Payable (short-term)
500
Prepaid Rent
100
Rent Expense
400
Retained Earnings
1,500
Salaries and Wages Expense
2,200
Service Revenue
6,200
Supplies
500
Supplies Expense
200
Travel Expense
2,600
PA4-1 Part 1
Required:
1-a. Prepare an adjusted trial balance at September 30, 2018.
1-b. Is the Retained Earnings balance of $1,500 the amount that would be reported on the balance sheet as of September 30, 2018?
Yes
No
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