Question

2. Prepare a post-closing trial balance as of December 31, 2021 GREAT ADVENTURES, Inc Pose-dosing Trial Balance December 31, 2021 Accounts Debit Cash Prepaid Insurance Prepaid Rent Supplies (Office) Supplies (Racing) Equipment (Bikes) Equipment (Kayaks) Accumulated Depreciation Accounts Payable Income Tax Payable Interest Payable Notes Payable Common Stock Retained Earnings Dividends Service Revenue (Clinic) Service Revenue (Racing) Advertising Expense Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Legal Fees Expense Miscellaneous Expense Rent Expense Saines Expense Supples Expense office Supplen Expense (Racing)

Answer 1

Great Adventures Inc. Trial Balance Accounts Cash Prepaid Insurance Prepaid Rent Supplies (Office) Supplies (Racing) Equipment (Bikes) Equipment (Kayaks) Accumulated Depreciation Accounts Payable Deferred Revenue Interest Payable Income taxes payable Notes Payable Common stock Retained Earnings Totals Post closing TB As of Dec Debit Credit 98,090 1,920 3,120 260 260 15,000 23,400 9,000 2,600 875 14,000 35,000 34,000 46,575 142,050 142,050

Great Adventures Inc. Journal entries No. Date Accounts 1 1-Jul Cash Common Stock Credit Debit 17,000 17,000 17,000 1-Jul Cash Common Stock 17,000 3 3,840 1-Jul Prepaid Insurance Cash 3,840 4 1,100 2-Jul Legal fees expense Cash 1,100 1,700 4-Jul Supplies (Office) Accounts Payable 1,700 7-Jul Advertising expense Cash 210 210 7 15,000 8-Jul Equipment (Bikes) Cash 15,000 8 2,000 15-Jul Cash Service revenue (Clinic) 2,000 9 2,400 22-Jul Cash Service revenue (Clinic) 2,400 10 780 24-Jul Advertising expense Cash 780 11 10,500 30-Jul Cash Deferred Revenue 10,500 35,000 121-Aug Cash Notes Payable 35,000 13 23,400 4-Aug Equipment (Kayaks) Cash 23,400 14 10-Aug Cash Deferred Revenue Service revenue (Clinic) 4,000 10,500 14,500 15 12,400 17-Aug Cash Service revenue (Clinic) 12,400 16 1,700 24-Aug Accounts Payable Cash 1,700 17 1-Sep Prepaid Rent 4,680 Cash 4,680 18 14,700 21-Sep Cash Service revenue (Clinic) 14,700 19 17,900 17-Oct Cash Service revenue (Clinic) 17,900 20 1-Dec No entry 21 5-Dec No entry 22 1,700 8-Dec Misc expense Cash 1,700 23 2,600 12-Dec Supplies (Racing) Accounts Payable 2,600 24 23,600 15-Dec Cash Service revenue (Racing) 23,600 25 16-Dec Salary expense 1,600 Cash 1,600 26 4,400 31-Dec Dividends Cash 4,400 27 31-Dec No entry

Credit Calculation Adjusting entries No. Date Accounts 28 31-Dec Depreciation expense Accumulated Depreciation Debit 9,000 ACCU 9,000 29 1,920 =3,840/12*6 31-Dec Insurance expense Prepaid Insurance 1,920 30 1,560 -4,680/12*4 31-Dec Rent expense Prepaid Rent 1,560 31 31-Dec Supplies (Office) expense Supplies (Office) 1,440 =1,700-260 1,440 32 875 =35,000*6%*5/12 31-Dec Interest expense Interest Payable 875 33 2,340 =2,600-260 31-Dec Supplies (Racing) expense Supplies (Racing) 2,340 34 14,000 31-Dec Income tax expense Income tax payable 14,000

Credit Closing entries No. Date Accounts 35 31-Dec Service revenue (Clinic) Service revenue (Racing) Retained Earnings Debit 63,900 23,600 87,500 36 36,525 31-Dec Retained Earnings Advertising expense Legal fees expense Misc expense Salary expense Depreciation expense Insurance expense Rent expense Supplies (Office) expense Supplies (Racing) expense Interest expense Income tax expense 990 1,100 1,700 1,600 9,000 1,920 1,560 1,440 2,340 875 14,000 37 4,400 31-Dec Retained Earnings Dividends 4,400

Credit Credit Date Credit Date Credit Date Debit Date Prepaid Insurance 1-Jul 3,840 31-Dec Debit Date Prepaid Rent 4,680 31-Dec Debit Date Supplies (Office) 1,700 31-Dec 1,920 1-Sep 1,560 4-Jul 1,440 Great Adventures Inc. T Accounts Date Debit Date Cash 1.Jul 17,000 1-Jul 1-Jul 17,000 2-Jul 15-Jul 2,000 7-Jul 22-Jul 2,400 8-Jul 30-Jul 10,500 24-Jul 1-Aug 35,000 4-Aug 10-Aug 4,000 24-Aug 17-Aug 12,400 1-Sep 21-Sep 14,700 8-Dec 17-Oct 17,900 16-Dec 15-Dec 23,600 31-Dec 3,840 1,100 210 15,000 780 23,400 1,700 4,680 1,700 1,600 4,400 Bal. Bal. 1,920 Bal. Bal. 98,090 Supplies (Racing) 2,600 31-Dec Equipment (Bikes) 15,000 3,120 Equipment (Kayaks) 23,400 260 Accum. Depreciation 31-Dec 12-Dec 2,340 8 -Jul 4-Aug 9,000 Bal. Bal. Bal. 9,000 260 Accounts Payable 1,700 4-Jul 12-Dec 15,000 Deferred Revenue 10,500 30-Jul 23,400 Interest Payable 31-Dec Bal. Income taxes payable 31-Dec 24-Aug 1 0-Aug 10,500 875 14,000 1,700 2,600 2,600 Bal. 875 14,000 Bal. Notes Payable 1-Aug Bal. Dividends 4,400 31-Dec Common Stock 1-Jul 1-Jul Bal. Retained Earnings 36,525 31-Dec 4,400 35,000 31-Dec 87,500 17,000 17,000 31-Dec 31-Dec 4,400 35,000 34,000 Bal. 46,575 Bal. Service revenue (Racing) 16-Dec Bal. Legal fees expense 1,100 23,600 Advertising expense 210 780 7-Jul 24-Jul 2-Jul Bal. Service revenue (Clinic) 15-Jul 22-Jul 10-Aug 17-Aug 21-Sep 31-Dec 63,900 17-Oct 2,000 2,400 14,500 12,400 14,700 17,900 31-Dec 23,600 31-Dec 990 31-Dec 1,100 Bal. Bal. Bal. Misc expense 1,700 31-Dec Bal. Salary expense 1,600 31-Dec 8-Dec 16-Dec Depreciation expense 31-Dec 9,000 31-Dec 31-Dec Insurance expense 1,920 31-Dec 1,700 1,600 9,000 1,920 Bal. Bal. Bal. Bal. Supplies (Office) expense 31-Dec 1,440 31-Dec Rent expense 1,560 31-Dec 31-Dec .. Interest expense 875 31-Dec Supplies (Racing) expense 31-Dec 2,340 31-Dec 31-Dec 1,560 1,440 2,340 875 Bal. Bal. Bal. 31-Dec Income tax expense 14,000 31-Dec 14,000 Bal.