PA4-1 Preparing a Trial Balance, Closing Journal Entry, and Post-Closing Trial Balance [LO 4-3, LO 4-5]

[The following information applies to the questions displayed below.]

Starbooks Corporation provides an online bookstore for electronic books. The following is a simplified list of accounts and amounts reported in its accounting records. The accounts have normal debit or credit balances. Assume the year ended on September 30, 2018.

Accounts Payable	$	600
Accounts Receivable		300
Accumulated Depreciation		900
Cash		300
Common Stock		200
Deferred Revenue		200
Depreciation Expense		300
Equipment		3,200
Income Tax Expense		300
Interest Revenue		100
Notes Payable (long-term)		200
Notes Payable (short-term)		500
Prepaid Rent		100
Rent Expense		400
Retained Earnings		1,500
Salaries and Wages Expense		2,200
Service Revenue		6,200
Supplies		500
Supplies Expense		200
Travel Expense		2,600

PA4-1 Part 1

Required:

1. 1-a. Prepare an adjusted trial balance at September 30, 2018.

1. 1-b. Is the Retained Earnings balance of $1,500 the amount that would be reported on the balance sheet as of September 30, 2018?

• Yes

• No