Problem 4.5 Closing process and post-closing trial balance Timber Creek prepared the following adjusted trial balance on December 31, 20X3. The company has completed preparation of financial statements and is now ready to prepare closing entries. Timber Creek Adjusted Trial balance Dec 31, 20X9 Debits Credits Cash s 35 600 $ Accounts receivable 23.700 Supplies 7 50C Equipment 325.700 Accumulated depreciation 40.400 Accounts payable 34.800 Loan payable 100.000 Capital stock 80.000 Retained earnings 70.000 Dividends 20.000 Revenues 478.400 Rent expense 120.000 Salaries expense 235.600 Supplies expense 18.000 Interest expense 7.400 Depreciation expense 10.100 Total 5 803.600 s 803.600 a) Prepare the necessary closing entries. CENERAL JOURNAL Date Accounts Dec 31, 20X9 Debits Credits To close the expense accounts to Income Summary Dec 31, 20X9 To close the revenge accomo lo Income Summary Dec 31, 20X9 To close Income Summary to Retained Earnings Dec 31, 20X9 To close Dividends to Retained Earnings b) Post these journal entries to the ledger (but first enter the values from the trial balance!) and use the T-accounts to determine the post-closing balances of the permanent accounts. CASH DIVIDENDS dosing ACCOUNTS RECEIVABLE REVENUES closing SUPPLIES RENT EXPENSE closing EQUIPMENT SALARIES EXPENSE doing ACCUMULATED DEPRECIATION SUPPLIES EXPENSE closing ACCOUNTS PAYABLE INTEREST EXPENSE doing LOAN PAYABLE DEPRECIATION EXPENSE dosing CAPITAL STOCK INCOME SUMMARY closing dosing doors RETAINED EARNINGS closing closing c) Using the new account balances, prepare the post-closing trial balance. Timber Creek Post-Closing Trial balance Dec 31, 20X9 Debits Credits $ $ Total $