Instructions

$1)$ Q$1$ asks you to prepare closing entries at the end of the accounting cycle. The unadjusted trial balance can be found in the tab

for Q$2.$

$2)$ Input your closing entries into the appropriate column for the worksheet.

$3)$ Use the balances in the worksheet to prepare the Income Statement in Q$3,$ the Statement of Owners' Equity in Q$4,$ and the

Balance Sheet in Q$5.$

$4)$ When preparing journal entries and the financial statements, use the drop down lists to choose the appropriate account titles.

If there are multiple accounts in the same section, record debits first for journal entries and then credits.

If there are multiple accounts in the same section, order the accounts as they appear on the worksheet.

You may need to leave some cells blank. Make sure that blank responses are at the bottom of any given answer section.

$5)$ Make sure to enter negative numbers where appropriate in the financial statements

$1)$ Prepare the appropriate closing entry for $20$X$2$ related to revenues and gains.

Account Name Debit Credit

C$2)$ Prepare the appropriate closing entry for $20$X$2$ related to expenses and losses.

Account Name Debit Credit

C$3)$ Prepare the appropriate closing entry for $20$X$2$ related to dividends.

Account Name Debit Credit

From this Q$2$ Worksheet:

Adjusted T$/$B Closing Entries Post Closing Trial Balance

Account Debit Credit Debit Credit Debit Credit

Cash $$55,104$ $$0$

Accounts Receivable $168180$

Inventory $272850$

Prepaid Insurance $21600$

Property, Plant, & Equipment $8168400$

Deferred Revenue $0182$

Accounts Payable $010414$

Salaries Payable $02852$

Interest Payable $07686\mathrm{.}009$

Notes Payable $0284667$

Common Stock $044343$

Retained Earnings $0445626$

Dividends $19380$

Sales Revenue $0386591$

Cost of Goods Sold $1599240$

Salaries Expense $341540$

Insurance Expense $34340$

Depreciation Expense $544560$

Interest Expense $10248\mathrm{.}0090$

$$1,182,361\mathrm{.}009$ $$1,182,361\mathrm{.}009$

Income Statement

For the year ended December $31,20$X$2$

Revenue

Sales Revenue $0$

Total Revenues $$0$

Expenses:

Cost of Goods Sold $$0$

Salaries Expense $$0$

Insurance Expense $$0$

Depreciation Expense $$0$

Interest Expense $$0$

Total Expenses $0$

NET INCOME $$0$

Statement of Shareholders' Equity

For the year ended December $31,20$X$2$

Common Stock Retained Earnings Total Owners' Equity

Balance, January $1$ $$44,343$ $$445,626$ $$489,969$

Issue common stock

Net income

Dividends

Balance, December $31$

Business Entity

Balance Sheet

As of December $31,20$X$2$

$20$X$2$

ASSETS:

Current Assets:

Cash

Accounts Receivable

Inventory

Prepaid Insurance

Total Current Assets

Non$-$Current Assets:

Property, Plant, & Equipment

Total Non$-$Current Assets

TOTAL ASSETS $$0$

LIABILITIES:

Current Liabilities:

Deferred Revenue

Accounts Payable

Salaries Payable

Interest Payable

Total Current Liabilities

Non$-$Current Liabilities:

Notes Payable

Total Non$-$Current Liabilities

TOTAL LIABILITIES $$0$

OWNERS' EQUITY:

Common Stock

Retained Earnings

TOTAL OWNER'S EQUITY $0$

TOTAL LIABILITIES & OWNER'S EQUITY $$0$