Question

Sheridan Company ended its fiscal year on July 31, 2020. The company’s adjusted trial balance as of the end of its fiscal year is as follows.

Sheridan Company Adjusted Trial Balance July 31, 2020
No.		Account Titles		Debit		Credit
101		Cash		$8,100
112		Accounts Receivable		8,900
157		Equipment		15,800
158		Accumulated Depreciation—Equip.				$7,200
201		Accounts Payable				4,800
208		Unearned Rent Revenue				1,900
301		Owner’s Capital				44,900
306		Owner’s Drawings		16,400
400		Service Revenue				64,900
429		Rent Revenue				6,400
711		Depreciation Expense		9,200
726		Salaries and Wages Expense		56,600
732		Utilities Expense		15,100
				$130,100		$130,100

Prepare a post-closing trial balance at July 31.

SHERIDAN COMPANY Post-Closing Trial Balance   the Year Ended July 31, 2020
	Debit		Credit
Totals	$		$

Answer 1

Income statement

Service revenue	64,900
Rent revenue	6,400
Total revenue (i)	71,300
Expenses :
Depreciation expense	9,200
Salaries and wages expense	56,600
Utilities expense	15,100
Total expenses (ii)	80,900
Net loss (i - ii)	-$9,600

Statement of owner's equity

Capital, beginning	44,900
Net loss	-9,600
Drawings	-16,400
Capital ending	$18,900

Trial balance (Post closing)

Account title	Debit	Credit
Cash	8,100
Accounts receivable	8,900
Equipment	15,800
Accumulated depreciation - Equipment		7,200
Accounts payable		4,800
Unearned rent revenue		1,900
Capital, ending		18,900
	$32,800	$32,800

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