The following additional information is available at December 31, 2018:       Insurance of $450,000 was paid on May 1, 2018 for the 10-months to February 2019. The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $100,000. The computer equipment was acquired on March 1, 2018 and is being depreciated over 10 years on the double-declining method of depreciation, down to a residue of $60,000. Wages earned by employees NOT yet paid amounted to 15,000 at December 31, 2018. A physical count of inventory at December 31, reveals $180,000 worth of inventory on hand. At December 31, $140,000 of the previously unearned sales revenue had been earned. The aging of the Accounts Receivable schedule at December 31 indicated that the estimated uncollectible on account receivable should be $45,000. REQUIRED: Prepare the closing entries Prepare the post-closing trial balance

Question

The following additional information is available at December 31, 2018:      

  • Insurance of $450,000 was paid on May 1, 2018 for the 10-months to February 2019.
  • The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $100,000.
  • The computer equipment was acquired on March 1, 2018 and is being depreciated over 10 years on the double-declining method of depreciation, down to a residue of $60,000.
  • Wages earned by employees NOT yet paid amounted to 15,000 at December 31, 2018.
  • A physical count of inventory at December 31, reveals $180,000 worth of inventory on hand.
  • At December 31, $140,000 of the previously unearned sales revenue had been earned.
  • The aging of the Accounts Receivable schedule at December 31 indicated that the estimated uncollectible on account receivable should be $45,000.

REQUIRED:

  1. Prepare the closing entries
  2. Prepare the post-closing trial balance

 

 

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Trial Balance and Adjustement Entries

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