Chapter 5 Additional Problem Problem 5-3 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 2019. Print the forms on the following pages and use them to complete this problem. 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 2-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 2-Gray Co workbook. Problem 5-3 Forms Date Account General Journal Debit Credit Problem 5-3 Forms (continued) Assets Dr. Cr. Beg. Balance Feb 01 Feb 02 700 Feb 07 1,000 Feb 11 7,500 Feb 26 900 Feb 27 Ending Balance Beg. Balance Feb 10 Feb 27 Ending Balance Beg. Balance Feb 01 Feb 10 Feb 11 Ending Balance Beg. Balance Ending Balance Dr. Cash Dr. 6,000 9,000 1,500 6,400 Accounts Receivable 0 4,500 3,000 Cr. 1,500 Inventory Cr. 7,000 5,000 2,000 7,500 7,500 Dr. Equipment Cr. 5,000 5,000 General Ledger Liabilities Beg. Balance Ending Balance Beg. Balance Feb 28 Ending Balance Dr. Note Payable Cr. 8,000 8,000 Dr. Interest Payable Cr.. 0 40 40 Owners' Equity Dr. Beg. Balance Ending Balance Beg. Balance Beg. Balance Feb 01 Feb 10 Ending Balance Beg. Balance Feb 01 Feb 10 Ending Balance Beg. Balance Feb 02 Ending Balance Beg. Balance Feb 07 Feb 26 Ending Balance Beg. Balance Feb 28 Ending Balance Dr. Dr. Dr. Dr. Dr. Dr. Common Stock Cr. 10,000 10,000 Retained Earnings Cr. 0 Sales Revenue Cr. 0 Cost of Goods Sold 0 5,000 2,000 7,000 Rent Expense 0 700 700 Wages Expense 0 1,000 900 1,900 9,000 4,500 13,500 Interest Expense 0 40 40 Cr. Cr. Cr. Cr. Account Name Post-Closing Trial Balance Debit Total Credit Name: Problem 5-3 --Gray Co. Closing Entries for February General Journal Date Account Section: #: Debit Credit Beg. Balance Feb 01 Feb 02 Feb 7 Feb 11 Feb 36 Feb 7 Ending Balance Beg. Balance Feb 10 Feb 27 Ending Balance Beg. Balance Feb 01 Feb 10 Feb 11 Ending Balance Beg. Balance Ending Balance Dr. Cash Dr. Dr. 6,000 9,000 1,500 6,400 700 1,000 7,500 900 Cr. 1,500 Inventory Cr. 7,000 5,000 2,000 7,500 7,500 Dr. Equipment Cr. 5,000 5,000 Cr. Accounts Recivable 0 4,500 3,000 Beg. Balance Ending Balance Beg. Balance Feb 28 Ending Balance Note Payable Dr. Cr. Interest Payable Dr. Cr. 8,000 8,000 0 40 40 Beg. Balance Ending Balance Beg. Balance Ending Balance Beg. Balance Feb 01 Feb 10 Ending Balance After Close Bal Beg. Balance Feb 01 Feb 10 Ending Balance After Close Bal Beg. Balance Feb2 Ending Balance After Close Bal Dr. Dr. Dr. Dr. Dr. Common Stock Cr. 10,000 10,000 Retained Earings Cr. 0 Sales Revenue Cr. 0 9,000 4,500 13,500 Cost of Goods Sold 0 5,000 2,000 7,000 Rent Expense 0 700 700 Cr. Cr. Beg. Balance Feb 07 Feb 25 Ending Balance After Close Bal Beg. Balance Feb 28 Ending Balance After Close Bal Dr. Dr. Wages Expense 0 1,000 900 1,900 Interest Expense 0 40 40 Cr. Cr. Chapter 5 Additional Problem Problem 5-3 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 2019. Print the forms on the following pages and use them to complete this problem. 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 2-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 2-Gray Co workbook. Problem 5-3 Forms Date Account General Journal Debit Credit Problem 5-3 Forms (continued) Assets Dr. Cr. Beg. Balance Feb 01 Feb 02 700 Feb 07 1,000 Feb 11 7,500 Feb 26 900 Feb 27 Ending Balance Beg. Balance Feb 10 Feb 27 Ending Balance Beg. Balance Feb 01 Feb 10 Feb 11 Ending Balance Beg. Balance Ending Balance Dr. Cash Dr. 6,000 9,000 1,500 6,400 Accounts Receivable 0 4,500 3,000 Cr. 1,500 Inventory Cr. 7,000 5,000 2,000 7,500 7,500 Dr. Equipment Cr. 5,000 5,000 General Ledger Liabilities Beg. Balance Ending Balance Beg. Balance Feb 28 Ending Balance Dr. Note Payable Cr. 8,000 8,000 Dr. Interest Payable Cr.. 0 40 40 Owners' Equity Dr. Beg. Balance Ending Balance Beg. Balance Beg. Balance Feb 01 Feb 10 Ending Balance Beg. Balance Feb 01 Feb 10 Ending Balance Beg. Balance Feb 02 Ending Balance Beg. Balance Feb 07 Feb 26 Ending Balance Beg. Balance Feb 28 Ending Balance Dr. Dr. Dr. Dr. Dr. Dr. Common Stock Cr. 10,000 10,000 Retained Earnings Cr. 0 Sales Revenue Cr. 0 Cost of Goods Sold 0 5,000 2,000 7,000 Rent Expense 0 700 700 Wages Expense 0 1,000 900 1,900 9,000 4,500 13,500 Interest Expense 0 40 40 Cr. Cr. Cr. Cr. Account Name Post-Closing Trial Balance Debit Total Credit Name: Problem 5-3 --Gray Co. Closing Entries for February General Journal Date Account Section: #: Debit Credit Beg. Balance Feb 01 Feb 02 Feb 7 Feb 11 Feb 36 Feb 7 Ending Balance Beg. Balance Feb 10 Feb 27 Ending Balance Beg. Balance Feb 01 Feb 10 Feb 11 Ending Balance Beg. Balance Ending Balance Dr. Cash Dr. Dr. 6,000 9,000 1,500 6,400 700 1,000 7,500 900 Cr. 1,500 Inventory Cr. 7,000 5,000 2,000 7,500 7,500 Dr. Equipment Cr. 5,000 5,000 Cr. Accounts Recivable 0 4,500 3,000 Beg. Balance Ending Balance Beg. Balance Feb 28 Ending Balance Note Payable Dr. Cr. Interest Payable Dr. Cr. 8,000 8,000 0 40 40 Beg. Balance Ending Balance Beg. Balance Ending Balance Beg. Balance Feb 01 Feb 10 Ending Balance After Close Bal Beg. Balance Feb 01 Feb 10 Ending Balance After Close Bal Beg. Balance Feb2 Ending Balance After Close Bal Dr. Dr. Dr. Dr. Dr. Common Stock Cr. 10,000 10,000 Retained Earings Cr. 0 Sales Revenue Cr. 0 9,000 4,500 13,500 Cost of Goods Sold 0 5,000 2,000 7,000 Rent Expense 0 700 700 Cr. Cr. Beg. Balance Feb 07 Feb 25 Ending Balance After Close Bal Beg. Balance Feb 28 Ending Balance After Close Bal Dr. Dr. Wages Expense 0 1,000 900 1,900 Interest Expense 0 40 40 Cr. Cr