Ex. 219
Presented below is an adjusted trial balance for Cowell Company, at December 31, 2014.
Cash€10,700Accounts payable€10,000
Accounts receivable20,000Notes payable9,000
Prepaid insurance15,000Accumulated depreciation—
Equipment35,000 equipment14,000
Depreciation expense7,000Service revenue30,000
Dividends1,500Retained earnings12,000
Advertising expense1,400Unearned service revenue11,000
Rent expense800Share capital-ordinary12,000
Salaries and wages expense5,000
Insurance expense 1,600
€98,000€98,000
Instructions
(a)Prepare closing entries for December 31, 2014.
(b)Determine the balance in the retained earnings account after the entries have been posted.
Ex. 220
The adjusted account balances of the Quick-E Delivery Service at October 31 are as follows:
AccountsAccount BalancesAccountsAccount Balances
Cash$16,000Service Revenue$90,000
Accounts Receivable15,000Interest Revenue8,000
Supplies4,000Depreciation Expense27,000
Prepaid Insurance8,000Insurance Expense6,000
Equipment300,000Salaries and Wages Expense30,000
Accumulated Depreciation—Supplies Expense9,000
Equipment120,000Utilities Expense12,000
Accounts Payable19,000Dividends15,000
Retained Earnings105,000
Share Capital-Ordinary100,000
Instructions
Prepare the end of the period closing entries for the Quick-E Delivery Service.