Question

Pronghorn Company ended its fiscal year on July 31, 2019. The company's adjusted trial balance as of the end of its fiscal year is shown below. 112 Pronghorn Company Adjusted Trial Balance July 31, 2019 No. Account Titles Debit Credit 101 Cash $8,550 Accounts 8,500 Receivable 157 Equipment 15,900 Accumulated 158 Depreciation- $7,300 Equip. 201 Accounts Payable 4,050 208. Unearned Rent 2,400 Revenue 311 Common Stock 17,800 320 Retained Earnings 26,000 332 Dividends 16,500 400 Service Revenue 65,000 429 Rent Revenue 6,000 Depreciation 8,000 Expense Salaries and Wages 56,600 Expense 732 Utilities Expense 14,500 $128,550 $128,550 711

Answer 1

Date	General Jounral	Debit	Credit
July 31	Service revenue	$65,000
	Rent revenue	$6,000
	Income Summary		$71,000
	(To close revenue account)
July 31	Income Summary     [Total expenses = $8,000 + $56,600 + $14,500	$79,100
	Depreciation Expense		$8,000
	Salaries and wages Expense		$56,600
	Utilities expense		$14,500
	(To close Expense accounts
July 31	Retained Earnings	$8,100
	Income Summary         [Net loss = Total expenses - Total revenues = $79,100 - $71,000]		$8,100
	(To close net income / loss)
July 31	Retained Earnings	$16,500
	Dividends		$16,500
	(To record dividends)

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Retained earnings
Date	Explanation	Ref.	Debit	Credit	Balance
July 31	Balance	J15			$26,000
	Close Net income / loss	J15	$8,100		$17,900
	Close dividends	J15	$16,500		$1,400
Income Summary
Date	Explanation	Ref.	Debit	Credit	Balance
July 31	Close Revenue	J15		$71,000	$71,000
	Close Expenses	J15	$79,100		-$8,100
	Close Net income / loss	J15		$8,100	$0

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Pronghorn Company
Post Closing Trail Balance
July 31, 2019
	Debit	Credit
Cash	$8,550
Accounts Receivable	$8,500
Equipment	$15,900
Accumulated Depreciation-Equip.		$7,300
Accounts Payable		$4,050
Unearned Rent Revenue		$2,400
Common stock		$17,800
Retained earnings [Refer retained earnings account]		$1,400
Total	$32,950	$32,950