Question

5-10, Closing entries. You are given the following adjusted trial balance. Try Again, Inc. Adjusted Trial Balance May 31, 2028 Cash S 1,360 12.410 $16 742 30.600 $ Accounts Receivable Supplies Prepaid Insurance Trucks Accumulated Depreciation Trucks Accounts Payable Income Taxes Payable Common Stock Retained Earnings Dividends Service Revenue Wages Expense Insurance Expense Utility Expense Depreciation Expense: Trucks Income Taxes Expense 5.440 1.100 1.300 10.000 21.023 2.000 19,400 7,400 915 550 440 1,300 $58,263 $58,263 Complete parts a, b, c, and d on the following pages. 143

Answer 1

Solution:

a) Closing Journal Entries:

General Journal                                                                                       Page
Date	Description	Post Ref.	Debit	Credit
May. 31	Service Revenue		$          19,400
	Income Summary			$           19,400
	(To close Income account )
May. 31	Income Summary		$          10,605
	Wages Expense			$              7,400
	Insurance Expense			$                 915
	Utility Expense			$                 550
	Depreciation Expense: Trucks			$                 440
	Income Taxes Expense			$              1,300
	(To close Expense account )
May. 31	Income Summary		$            8,795
	Retained Earnings			$              8,795
	(To close income summary )
May. 31	Retained Earnings		$            2,000
	Dividends			$              2,000
	(To close dividend account to retained earnings)

b) Post Closing Trial Balance:

Try Again, Inc.
Post Closing Trial Balance
for the year end May 31,2028
Account title	Debit	Credit
Cash	$                  1,360	$                     -
Accounts Receivable	$               12,440	$                     -
Supplies	$                     516	$                     -
Prepaid Insurance	$                     742	$                     -
Trucks	$               30,600	$                     -
Accumulated Depreciation; Trucks	$                         -	$              5,440
Accounts Payable	$                         -	$              1,100
Income Taxes Payable	$                         -	$              1,300
Common Stock	$                         -	$           10,000
Retained Earnings	$                         -	$           27,818
Total	$               45,658	$           45,658

c) Net Income or Loss: $ 8,795 ( Profit)

Date	Description	Post Ref.	Debit	Credit
May. 31	Income Summary ( 19400-10605)		$            8,795
	Retained Earnings			$              8,795
	(To close income summary )

d) Ending Balance of Retained Earnings = $ 27,818

Retained Earnings
Dividends	$         2,000	Beg Balance	$                21,023
		Income Summary	$                   8,795
		End Balance	$                27,818