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Worksheet
1
2
3
4
5
6
7
8
9
10
Unadjusted Trial Balance
Adjustments
Adjustments Balances
Operating Statement
Balance Sheet
Account Title
Dr
Cr
Dr
Cr
Dr
Cr
Dr
Cr
Dr
Cr
Cash
7881
7881
7881
Accounts Receivable
230
230
230
Inventory
9000
(b)8000
(a)9000
8000
8000
Prepaid Insurance
1000
(c)100
900
900
Office Supplies
311
(d)60
251
251
Land
50000
50000
50000
Building
50000
50000
50000
Accumulated Dep. -Building
14400
(e)200
14600
14600
Equipment
2000
2000
2000
Accumulated Dep.-Equipment
1200
(e)20
1220
1220
Notes Payable
5200
5200
5200
Accounts Payable
1220
1220
1220
Sales Tax Payable
449
449
449
Mortgage Payable
68800
68800
68800
Alice Peterson-Capital
22991
22991
27773
Alice Peterson- Drawing
125
125
Income Summary
(a)9000
(b)8000
9000
8000
9000
8000
Sales
12694
12694
12694
Sales Return and Allowances
53
53
53
Purchases
1420
1420
1420
Purchase Returns &Allowances
200
200
200
Salary Expense
5000
5000
5000
Utility Expense
55
55
55
Telephone Expense
45
45
45
Office Supply Expense
(b)60
60
60
Insurance Expense
(c)100
100
100
Depreciation Expense
(e) 220
220
220
Bad Debt Expense
34
34
34
Total
127154
127154
17380
17380
135374
135374
15987
20894
119262
119262
Net Income (Loss)
4907
20894
20894
119262
119262
These are the procedures for closing the book and I also need assistance in doing the post-closing trial balance sheet.
1. Close the sales account and purchase by making the appropriate entries in the general journal. Close both of them out together because they both have a credit balance. After making the journal entries make a debit entry for each of them separately and then make one credit entry in the total amount to the Income Summary account.
2. Post the closing entry for the sales and purchase returns allowance accounts to the general ledger.
3. Close the purchase account, the sales returns and allowances account. Close all accounts together since they all carry debit balances, make credit entries in the general journal for each amount amounts separately. Make one debit entry to the Income Summary account for the total amount
4. Post the closing entries for the purchases, sales returns and allowances and the expense accounts to the general ledger.
5. Close the income summary, Find the Income Summary account balance; determine if it is a credit or debit balance and then make an opposite entry in the general journal. Then make the appropriate entry into the Capital account.
6. Post the entries made in the step 13 to the general ledger.
7. Close the drawing account. Take the amount of the drawing account and make a debit entry in the general journal to the Capital account. Make an offsetting credit entry in the same amount to the Drawing account.
8. Post the entries made in step 15 to the general ledger.
9. Prepare a post-closing trial balance sheet from the remaining open account. The totals of the debit and credit columns on this balance sheet should match.