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Preparing a Trial Balance, Closing Journal Entry, and Post-Closing Trial Balance. The following information applies to the...

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Accounting

Preparing a Trial Balance, Closing Journal Entry, andPost-Closing Trial Balance. The following information applies tothe questions displayed below.] Starbooks Corporation provides anonline bookstore for electronic books. The following is asimplified list of accounts and amounts reported in its accountingrecords. The accounts have normal debit or credit balances. Assumethe year ended on September 30, 2018.

Accounts Payable $ 602

Accounts Receivable 302

Accumulated Depreciation 902

Cash 302

Common Stock 202

Deferred Revenue 202

Depreciation Expense 302

Equipment 3,202

Income Tax Expense 302

Interest Revenue 102

Notes Payable (long-term) 202

Notes Payable (short-term) 502

Prepaid Rent 102

Rent Expense 402

Retained Earnings 1,502

Salaries and Wages Expense 2,202

Service Revenue 6,206

Supplies 502

Supplies Expense 202

Travel Expense 2,602

How to prepare an adjusted trial balance at September 30,2018?

Is the Retained Earnings balance of $1,502 the amount that wouldbe reported on the balance sheet as of September 30, 2018? Yes orNo??

Answer & Explanation Solved by verified expert
3.6 Ratings (330 Votes)

Adjusted Trial Balance
Cash $        302.00
Accounts Receivable $        302.00
Supplies $        502.00
Prepaid Rent $        102.00
Equipment $    3,202.00
Accumulated Depreciation $        902.00
Accounts Payable $        602.00
Deferred Revenue $        202.00
Notes Payable (short-term) $        502.00
Notes Payable (long-term) $        202.00
Common Stock $        202.00
Retained Earnings $    1,502.00
Service Revenue $    6,206.00
Interest Revenue $        102.00
Supplies Expense $        202.00
Salaries and Wages Expense $    2,202.00
Travel Expense $    2,602.00
Depreciation Expense $        302.00
Income Tax Expense $        302.00
Rent Expense $        402.00
$ 10,422.00 $ 10,422.00
Statement of Retained Earnings
Beginning Balance of Retained Earnings $ 1,502.00
Add: Net Income for the period $     296.00
Closing Balance of Retained Earnings $ 1,798.00
Amount of Retained Earnings to be
reported in the balance sheet is $ 1798

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