Question

Post Closing Entries

ABC Corporation
Adjusted Trial Balance
December 31, 2016
	Debit	Credit
Cash	$          834,544
Accounts Receivable	442,120
Allowance for doubtful accounts		75,000
Inventory	70,000
Allowance to Reduce Inventory to NRV		16,000
Prepaid Insurance	4,500
Land	88,000
Building	37,500
Accumulated depreciation: building		1,265
Equipment	21,600
Accumulated depreciation: equipment		9,900
Patent	45,000
Accounts Payable		88,851
Interest Payable		35,000
Income taxes payable		37,221
Wages payable		4,000
Unearned rent revenue		9,000
Bonds payable		700,000
Premium on Bonds payable		52,045
Common stock		135,000
PIC in Excess of Par- Common Stock		130,000
Paid in Capital- Treasury Stock		6,000
Retained earnings
Treasury stock	10,000
Dividends	28,000
Sales Revenue		790,000
Rent Revenue		4,500
Purchases	177,000
Wages expense	66,150
Bad debt expense	75,000
Office expense	28,500
Insurance expense	22,500
Advertising expense	9,240
Depreciation expense	11,165
Interest expense	31,171
Loss on inventory	16,000
Utilities expense	33,571
Impairment loss expense	5,000
Income taxes expense	37,221
Total	2,093,782	2,093,782

Answer 1

1	Sales Revenue	790000
	Rent Revenue	4500
	to Income Summary		794500
2	Income Summary	442518
	to Cost of good sold		107000	(177000-70000)
	to Wages expenses		66150
	to Bad Debts		75000
	to Office Expenses		28500
	to Insurance		22500
	to Advertising		9240
	to Depreciation		11165
	to Interest		31171
	to Loss on inventory		16000
	to Utilities exp		33571
	to Impairment loss		5000
	to Income tax		37221
3	Income Summary	347482
	to retained earning		347482
4	Retained earning	38000
	to Dividend		28000
	to Treasury Stock		10000