Explain the closing entry process and prepare the closing entries in journal form based on the information in question 1.

POST INC. BANK RECONCILIATION

Cash balance per bank $8,200

Cash balance per books (general ledger) $6,500

Outstanding checks $2,460

Check mailed to the bank for deposit had not reached the bank by the statement date. $500

NSF check returned by the bank for accounts receivable $100

July interest earned on the bank statement $20

Check no. 700 for misc. expense cleared the bank for $200; erroneously recorded in our books for $20

~ Prepare a bank reconciliation.

~ Shown the accounting entries that must be made by

~ Matrix Inc. in journal entry and T-Account format.

Following is the adjusted trial balance of Post Company. Based on this information prepare a Balance Sheet, Income Statement and Statement of Retained Earnings.

POST COMPANY ADJUSTED TRIAL BALANCE

Debit Credit

Cash 80,000

Accounts Receivable 12,000

Prepaid Insurance 2,000

Equipment 4,000

Accumulated Depreciation 100

Supplies 400

Accounts Payable 800

Wages Payable 200

Unearned Revenue 1,200

Contributed Capital 82,400

Retained Earnings 0

Sales 16,000

Gas Expense 200

Supply Expense 400

Insurance Expense 400

Depreciation Expense 100

Wage Expense 200

Dividends 1,000

100,700 100,700