Closing Entries

From the work sheet shown below, prepare the following:

1. Prepare closing entries for Gimbel's Gifts and Gadgets in a general journal. If an amount box does not require an entry, leave it blank.

2. Prepare a post-closing trial balance.

Gimbel's Gifts and Gadgets Work Sheet For Year Ended December 31, 20-1
	TRIAL BALANCE		ADJUSTMENTS		ADJUSTED TRIAL BALANCE		INCOME STATEMENT		BALANCE SHEET
ACCOUNT TITLE	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT
Cash	8,249				8,249				8,249
Accounts Receivable	6,701				6,701				6,701
Merchandise Inventory	14,191		(b) 16,570	(a) 14,191	16,570				16,570
Supplies	660			(c) 383	277				277
Prepaid Insurance	760			(d) 190	570				570
Building	75,500				75,500				75,500
Accum. Depr.Building		12,835		(e) 3,775		16,610				16,610
Accounts Payable		5,295				5,295				5,295
Wages Payable				(f) 276		276				276
Sales Tax Payable		301				301				301
J. M. Gimbel, Capital		83,933				83,933				83,933
J. M. Gimbel, Drawing	7,620				7,620				7,620
Income Summary			(a) 14,191	(b) 16,570	14,191	16,570	14,191	16,570
Sales		86,100				86,100		86,100
Sales Returns and Allowances	1,890				1,890		1,890
Purchases	54,500				54,500		54,500
Purchases Returns and Allowances		2,831				2,831		2,831
Purchases Discounts		1,062				1,062		1,062
Freight-In	773				773		773
Wages Expense	16,929		(f) 276		17,205		17,205
Advertising Expense	757				757		757
Supplies Expense			(c) 383		383		383
Phone Expense	2,052				2,052		2,052
Utilities Expense	1,274				1,274		1,274
Insurance Expense			(d) 190		190		190
Depr. ExpenseBuilding			(e) 3,775		3,775		3,775
Miscellaneous Expense	372				372		372
Interest Expense	129				129		129
	192,357	192,357	35,385	35,385	212,978	212,978	97,491	106,563	115,487	106,415
Net Income							9,072			9,072
							106,563	106,563	115,487	115,487

1. Prepare closing entries for Gimbel's Gifts and Gadgets in a general journal. If an amount box does not require an entry, leave it blank.

Page: 1

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-1 Dec. 31						1
2							2
3							3
4							4
5							5
6	Dec. 31						6
7							7
8							8
9							9
10							10
11							11
12							12
13							13
14							14
15							15
16							16
17							17
18							18
19							19
20	Dec. 31						20
21							21
22							22
23	Dec. 31						23
24							24

Post-Closing Trial Balance 2. Prepare a post-closing trial balance. Gimbel's Gifts and Gadgets Post-Closing Trial Balance December 31, 20-1 Debit balance Credit balance Account Total Post-Closing Trial Balance 2. Prepare a post-closing trial balance. Gimbel's Gifts and Gadgets Post-Closing Trial Balance December 31, 20-1 Debit balance Credit balance Account Total