The adjusted trial balance for Thao Company, owned by D. Thao, is as follows: Instructions a. Prepare

Question:

The adjusted trial balance for Thao Company, owned by D. Thao, is as follows:


Instructions
a. Prepare closing entries.
b. Use T accounts to post the closing entries and calculate the balance in each account. Income Summary is account No. 350.
c. Prepare a post-closing trial balance.


Taking It Further

D. Thao does not understand why the Owner’s Drawings account is not closed with the expense accounts and why a separate entry is required to close this account. Explain to D. Thao why this is necessary.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting Principles Volume 1

ISBN: 9781119786818

9th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

Question Posted: