The following is Baker Co.'s Pre-Closing Trial Balanceas of December 31, 2017. Baker's accounting period is a month, thusthe balances in the temporary accounts are for the month ofDecember 2017.
Account | Debit | Credit |
Cash | 10,000 | |
Accounts Receivable | 25,000 | |
Inventory | 40,000 | |
Supplies | 5,000 | |
Equipment | 100,000 | |
Accumulated Depreciation | | 30,000 |
Accounts Payable | | 12,000 |
Note Payable | | 13,000 |
Interest Payable | | 3,000 |
Unearned Revenue | | 8,000 |
Dividends Payable | | 7,000 |
Common Stock | | 10,000 |
Retained Earnings | | 46,000 |
Sales Revenue | | 193,000 |
Cost of Goods Sold | 78,000 | |
Depreciation Expense | 18,000 | |
Wages Expense | 42,000 | |
Supplies Expense | 3,000 | |
Interest Expense | 1,000 | |
| | |
Total | 322,000 | 322,000 |
Use the information in Baker’s Trial balance to answerquestions D through H.
D. In the General Journal below record the journal entrythat should be made to close the Revenue account(s).
E. In the General Journal below record the journal entrythat should be made to close the Expense accounts.
F. Based on Baker’s account balances, the amount of NetIncome that would be shown on Baker’s Income Statement for December2017 would be:
G. Based on Baker’s account balances, the amount ofTotal Assets that would be shown on Baker’s Balance Sheet as ofDecember 31, 2017 would be:
H. Based on Baker’s account balances, the amount ofTotal Equity that would be shown on Baker’s Balance Sheet as ofDecember 31, 2017 would be:
