The adjusted trial balance for Bray Company is below.

Instructions
a. Prepare an income statement, a statement of owner’s equity, and a classified balance sheet. L. Bray did not make any additional investments during the year.
b. Prepare the closing entries.
c. Post the closing entries and calculate the balance in each account. (Use T accounts.) Income Summary is account No. 350.
d. Prepare a post-closing trial balance.

Taking It Further

L. Bray has been told that, after the closing entries have been posted, he should stop and check his work. Explain to L. Bray what he should be checking for.

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Account No. 101 112 130 157 158 201 212 301 306 400 622 711 722 726 732 Account Titles BRAY COMPANY Adjusted Trial Balance December 31, 2024 Cash Accounts receivable Prepaid insurance Equipment Accumulated depreciation-equipment Accounts payable Salaries payable L. Bray, capital L. Bray, drawings Service revenue Repairs expense Depreciation expense Insurance expense Salaries expense Utilities expense Totals Dr. $ 8,800 10,800 2,800 24,000 11,000 1,700 2,800 1,800 30,000 1,400 $95,100 Cr. $ 4,200 9,000 2,400 19,500 60,000 $95,100