Question

The alphabetical listing below includes all of the adjusted account balances of Battle Creek, Inc. as of December 31, 2018. All account balances are normal Accounts Payable Accounts Receivable Accumulated Depreciation Common Stock Cash Depreciation Expense Dividends Equipment Income Tax Expense Income Taxes Payable Rent Expense Retained Earnings Salaries and Wages Expense Service Revenue Deferred Revenue $ 4,300 8,800 3,900 3,300 3,700 1,800 2,000 10,300 1,800 1,800 1,200 4,600 8,800 18,100 2,400 Required: o. Prepare the closing entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) b. Prepare the post-closing trial balance as of December 31, 2018. (Enter all account balances, including any that may carry o zero- c. Prepare the classified balance sheet at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.) balance)

Answer 1

1. Closing Entries -

Date Credit Battle Creek Closing Entries Accounts Title Debit Service Revenue $ 18,100 Income Summary (Being Revenue Account Closed) 1 $ 18,100 2. Income Summary $ 13,600 Salaries and Wages Expense Rent Expenses Depreciation Expense Income Tax Expense (Being Expense account closed) $ 8,800 $ 1,200 $ 1,800 $ 1,800 3 3 Income Summary $ 4,500 Retained Earnings $ 4,500 (Being Balance in income summary transferred) 4 Retained Earnings $ 2,000 Dividends (Being Dividend Account Closed) $ 2,000

2. Post Closing Trial Balance -

Credit Battle Creek Post Closing Trial Balance As of December 31, 2018 Accounts Title Debit Cash $ 3,700 Accounts Receivable $ 8,800 Equipment $ 10,300 Accumulated Depreciation Accounts Payable Deferred Revenue Income Tax Payable Common Stock Retained Earnings $ 3,900 $ 4,300 $ 2,400 $ 1,800 $ 3,300 $ 7,100 Total $ 22,800 $ 22,800

3. Balance Sheet -

Assets Current Assets: Cash Accounts Receivable Total Current Assets Battle Creek Balance Sheet As of December 31, 2018 Liabilities and Stockholder's Equity Current Liabilities: $ 3,700 Accounts Payable $ 8,800 Deferred Revenue $ 12,500 Income Tax Payable Total Current Liabilities $ 10,300 $ (3,900) Stockholder's Equity: Common Stock Retained Earnings Total Stockholder's Equity $ 4,300 $ 2,400 $ 1,800 $ 8,500 Equipment (-) Accumulated Depreciation $ 3,300 $ 7,100 $ 10,400 Total Assets $ 18,900 Total Liabilities and Stockholder's Equity $ 18,900