Question

At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts:

Account	Balance
Cash	$	28,200
Accounts receivable		18,400
Accounts payable		12,400
Common stock		21,900
Retained earnings		12,300

The following events apply to Oak Consulting for Year 2:

1. Provided $72,200 of services on account.
2. Incurred $3,000 of operating expenses on account.
3. Collected $46,900 of accounts receivable.
4. Paid $30,100 cash for salaries expense.
5. Paid $13,860 cash as a partial payment on accounts payable.
6. Paid a $8,900 cash dividend to the stockholders.

Prepare a post-closing trial balance.

Answer 1

Working:-

Cash = $28,200+$46,900-$30,100-$13,860-$8,900 = $22,240

Accounts Receivable = $18,400 + $72,200 - $46,900 = $43,700

Accounts Payable = $12,400 + $3,000 - $13,860 = $1,540

Retained Earnings = $12,300 + $72,200 - $3,000 - $30,100 - $8,900 = $42,500

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