Question

ElecBooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debitor credit balances Amounts in the list of accounts are rounded to the nearest thousand dollars. Assume the year ended on September 30, 2017 $ Accounts Payable Accounts Receivable Accrued Liabilities Accumulated Depreciation Cash Contributed Capital Depreciation Expense General and Administrative Expenses Income Tax Expense Interest Revenue Long-Term Debt Other Current Assets Other Long-Lived Assets Other Operating Expenses Prepaid Expenses Property and Equipment Retained Earnings Selling Expenses Service Revenues Short-Term Bank Loan Store Operating Expenses Supplies Deferred Revenue 281 211 374 320 327 171 360 377 322 112 216 521 217 114 1.50 2.65 496 606 195 Required: 1-a. Prepare an adjusted trial balance at September 30, 2017 (Enter your answers in thousands) ELECBOOKS CORPORATION Adjusted Trial Balance At September 30, 2017 in thousands) Account Titles Debit Credit < Prev Next > e DAL

Answer 1

Requirement 1-a:

ELECBOOKS CORPORATION
Adjusted Trial Balance
At September 30,2017
(in thousands)
Account titles	Debit	Credit
Cash	$327
Accounts receivable	$211
Supplies	$606
Prepaid expenses	$114
Other current assets	$91
Property and equipment	$2,202
Other long-lived assets	$521
Accumulated depreciation		$320
Accounts payable		$281
Short-term bank loan		$496
Accrued liabilities		$374
Deferred revenue		$195
Long-term debt		$216
Contributed capital		$171
Retained earnings		$1,505
Service revenue		$6,569
Interest revenue		$112
Depreciation expense	$360
General and administrative expense	$377
Store operating expenses	$2,226
Selling expenses	$2,665
Other operating expenses	$217
Income tax expense	$322
Total	$10,239	$10,239

Requirement 1-b:

Answer: No

Calculations:

Retained earnings, beginning	$1,505
Add: Net income	$514
Retained earnings, ending	$2,019

Therefore, Retained earnings balance should be reported in Balance Sheet is $2,019

Requirement 2:

Date	Account title and explanation	Debit	Credit
Sept 30,20217	Service revenue	$6,569
	Interest revenue	$112
	Depreciation expense		$360
	General and administrative expense		$377
	Store operating expenses		$2,226
	Selling expenses		$2,665
	Other operating expenses		$217
	Income tax expense		$322
	Retained earnings		$514
	[To close revenues and expenses]

Requirement 3:

ELECBOOKS CORPORATION
Closing Trial Balance
At September 30,2017
(in thousands)
Account titles	Debit	Credit
Cash	$327
Accounts receivable	$211
Supplies	$606
Prepaid expenses	$114
Other current assets	$91
Property and equipment	$2,202
Other long-lived assets	$521
Accumulated depreciation		$320
Accounts payable		$281
Short-term bank loan		$496
Accrued liabilities		$374
Deferred revenue		$195
Long-term debt		$216
Contributed capital		$171
Retained earnings		$2,019
Total	$4,072	$4,072