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A completed worksheet for The Best Group is given below.

THE BEST GROUP
Worksheet
Month Ended December 31, 20X1
	Trial Balance						Adjustments							Adjusted Trial Balance						Income Statement						Balance Sheet
Account Name	Debit		Credit			Debit				Credit				Debit			Credit			Debit			Credit			Debit			Credit
Cash	93,400													93,400												93,400
Accounts receivable	13,000													13,000												13,000
Supplies	8,000								(	a)	3,400			4,600												4,600
Prepaid advertising	32,000								(	b)	4,000			28,000												28,000
Equipment	85,000													85,000												85,000
Accumulated depreciationEquipment									(	c)	3,400						3,400												3,400
Accounts payable			13,000														13,000												13,000
Randy Best, Capital			142,000														142,000												142,000
Randy Best, Drawing	9,400													9,400												9,400
Fees income			103,500														103,500						103,500
Supplies expense					(	a)	3,400							3,400						3,400
Advertising expense					(	b)	4,000							4,000						4,000
Depreciation expenseEquipment					(	c)	3,400							3,400						3,400
Salaries expense	15,400													15,400						15,400
Utilities expense	2,300													2,300						2,300
Totals	258,500		258,500				10,800				10,800			261,900			261,900			28,500			103,500			233,400			158,400
Net income																				75,000									75,000
																				103,500			103,500			233,400			233,400

Required:

Record the adjusting entries in the general journal (transactions 1-3).

Record the closing entries in the general journal (transactions 4-7).

Post the adjusting entries and the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances.

Prepare a postclosing trial balance.

Analyze: How many accounts are listed in the adjusted and postclosing trial balance section?

Answer & Explanation Solved by verified expert

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