Chapter 5 Additional Problem Gray Co. Closing Entries for February

In this problem you will be closing Gray Co.s Revenue and Expense accounts for the month of February 20xx.

Requirement 1 Based on the General Ledger account balances, prepare Gray Co.s February closing entries. Place the closing entries in the General Journal.

Requirement 2 Post the closing entries to the General Ledger accounts.

Requirement 3 Compute an Ending Balance for the Retained Earnings account, and compute After Close Balances for the Revenue and Expense accounts.

Requirement 4 Prepare a Post-Closing Trial Balance.

Requirement 5 Compare your solutions for Requirements 1 through 4 to the Feb Close tab in the 02-Gray Co workbook.

Requirement 6 Compare the Ending Balance in your Retained Earnings account to the Retained Earnings amount in Gray Co.s Balance Sheet shown on the February tab in the 02-Gray Co workbook.