The adjusted trial balance is presented for Grant Advertising Agency Limited in P4-10B.

In P4-10B

The unadjusted and adjusted trial balances for Grant Advertising Agency Limited at its year end, December 31, 2012, follow. The company adjusts its accounts annually.

Additional information:
During the year, the company issued common shares for $3,000.
Instructions
(a) Prepare the closing journal entries.
(b) Prepare a post-closing trial balance at December 31.

Transcribed Image Text:

GRANT ADVERTISING AGENCY LIMITED Trial Balance December 31, 2012 Unadjusted Adjusted Debit Debit Credit $ 11,000 Credit 11,000 10,850 19,750 1,265 Short-term investments Accounts receivable Supplies Prepaid insurance Equipment Equipment-accumulated depreciation Accounts payable Interest payable Salaries payable Unearned revenue Loan payable, due in 2016 Income tax payable Common shares Retained earnings Dividends 10,850 18,650 7,200 2,400 66,000 66,000 $39,600 4,800 700 1,625 6,200 10,000 7,000 20,000 10,400 26,400 4,200 7,100 10,000 20,000 10,400 2,000 $12,000 6,600 2,000 58,600 Advertising revenue Salaries expense Depreciation expense Rent expense Supplies expense Insurance expense Interest expense Income tax expense 60,600 $ 13,625 13,200 7,200 5,935 1,600 7,000 $136,700 $136,700 $160,925 $160,925