Chapter 3, Problem 6PSA

1.

To determine

To prepare:

Ledger account, according to balance column format.

Explanation of Solution

Cash				Acct. No. 101
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (1)

Accounts Receivable				Acct. No. 106
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (2)

Office Supplies				Acct. No. 124
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (3)

Prepaid Insurance				Acct. No. 128
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (4)

Computer Equipment				Acct. No. 167
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (5)

Accumulated depreciation Computer Equipment				Acct. No. 168
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (6)

Salaries Payable				Acct. No. 209
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (7)

Common Stock				Acct. No. 307
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (8)

Retained Earnings				Acct. No. 318
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (9)

Dividends				Acct. No. 319
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (10)

Commission Earned				Acct. No. 406
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (11)

Depreciation Expense Computer Equipment				Acct. No. 612
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (12)

Salaries Expense				Acct. No. 622
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (13)

Insurance Expense				Acct. No. 637
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (14)

Rent Expense				Acct. No. 640
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (15)

Office Supplies Expense				Acct. No. 650
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (16)

Repairs Expense				Acct. No. 684
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (17)

Telephone expense				Acct. No. 688
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (18)

Income Summary				Acct. No. 901
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (19)

2.

To determine

To prepare:

Journal entry and post them to ledger account.

Explanation of Solution

Common Stock worth $50,000 issued in exchange for Cash and Computer Equipment.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
April 1	Cash		30,000
	Computer Equipment		20,000
	Common Stock			50,000
	(Being N brings in cash and Computer Equipment for Common Stock )

Table (20)

• Cash is an asset. Since, cash is received, it increases asset. Hence debit cash account.

• Building is an asset. Since, building is received, asset is increased. Hence, debit building accounts.

• Common stock is a liability. Since, common stock is issued, liability is increased. Hence, credit common stock account.

Rent paid for one month worth $1,800.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
April 2	Rent Expense		1,800
	Cash			1,800
	(Being rent paid for the first month))

Table (21)

• Rent Expense is an expense. Since, expense reduces equity, debit rent expense account.

• Cash is an asset. Since, cash is used to pay expense, asset is reduced. Hence, credit cash account.

Office Supplies Worth $1,000 purchased for cash.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
April 3	Office Supplies		1,000
	Cash			1,000
	(Being Office supplies worth $1,000 purchased)

Table (22)

• Office Supplies is an asset. Since, office supplies is purchased, it increases asset. Hence, debit office supplies account.

• Cash is an asset. Since, cash is used to buy asset, cash is reduced. Hence, credit cash account.

Insurance purchased worth$2,400 for cash.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
April 10	Prepaid Insurance		2,400
	Cash			2,400
	(Being Insurance purchased)

Table (23)

• Prepaid Insurance is an Asset. Since, insurance is purchased, asset is created. Hence, debit prepaid insurance account.

• Cash is an asset. Since, cash is used to buy asset, cash is reduced. Hence, credit cash account.

Salary Expense worth $1,600 paid for two weeks of work.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
April 14	Salary Expense		1,600
	Cash			1,600
	(Being Salary paid for two weeks of work)

Table (24)

• Salary Expense is an expense. Since, expense reduces equity, debit salary expense account.

• Cash is an asset. Since, cash is used to pay expense, asset is reduced. Hence, credit cash account.

Commission Earned from airlines worth $8,000.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
April 24	Cash		8,000
	Commission Earned			8,000
	(Being commission earned from airlines)

Table (25)

• Cash is an asset. Since, commission is earned and payment is received, it increases cash. Hence, debit cash account.

• Commission Earned is revenue. Since, income is earned, revenue is increased. Hence, credit commission earned account.

Salaries paid $1,600.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
April 28	Salary Expense		1,600
	Cash			1,600
	(Being Salary paid for two weeks of work)

Table (26)

• Salary Expense is an expense. Since, expense reduces equity, debit salary expense account.

• Cash is an asset. Since, cash is used to pay expense, asset is reduced. Hence, credit cash account.

Cash worth $350 used for repairs of company’ computer.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
April 29	Repair Expense		350
	Cash			350
	(Being cash spend on repairs)

Table (27)

• Repair Expense is an expense. Since, expense reduces equity, debit repair expense account.

• Cash is an asset. Since, cash is used to pay expense, asset is reduced. Hence, credit cash account.

Telephone expenses paid by company worth $750.

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
April 30	Telephone Expense		750
	Cash			750
	(Being telephone expenses paid)

Table (28)

• Telephone Expense is an expense. Since, expense reduces equity, debit telephone expense account.

• Cash is an asset. Since, cash is used to pay expense, asset is reduced. Hence, credit cash account.

Dividend paid by company worth $1,500

Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)
April 30	Dividends		1,500
	Cash			1,500
	(Being dividend paid by company)

Table (29)

• Dividend is a payment made to shareholders. Since, it reduces equity, debit dividend account.

• Cash is an asset. Since, cash is used to pay dividend, cash is reduced. Hence, credit cash account.

Posting of journal entries to ledger account:

	Cash			Acct. No. 101
Date	Account Title and Explanation		Post ref	Debit ($)	Credit ($)	Balance ($)
April 1	Common Stock			30,000		30,000
April 2	Rent Expenses				1,800	28,200
April 3	Office supplies				1,000	27,200
April 10	Prepaid Insurance				2,400	24,800
April 14	Salary Expense				1,600	23,200
April 24	Commission earned			8,000		31,200
April 28	Salary Expense				1,600	29,600
April 29	Repair Expense				350	29,250
April 30	Telephone Expense				750	28,500
April 30	Dividend				1,500	27,000

Table (30)

The ending balance is $27,000.

Accounts Receivable				Acct. No. 106
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (31)

The ending balance is $0.

Office Supplies				Acct. No. 124
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 3	Cash		1,000		1,000

Table (32)

The ending balance is $1,000.

Prepaid Insurance				Acct. No. 128
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 10	Prepaid Insurance		2,400		2,400

Table (33)

The ending balance is $2,400.

Computer Equipment				Acct. No. 167
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 1	Common Stock		20,000		20,000

Table (34)

The ending balance is $20,000.

Accumulated depreciation Computer Equipment				Acct. No. 168
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (35)

The ending balance is $0.

Salaries Payable				Acct. No. 209
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (36)

The ending balance is $0.

ommon Stock				Acct. No. 307
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 1	Cash			30,000	30,000
April 1	Computer Equipment			20,000	50,000

Table (37)

The ending balance is $50,000.

Retained Earnings				Acct. No. 318
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (38)

The ending balance is $0.

Dividends				Acct. No. 319
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Cash		1,500		1,500

Table (39)

The ending balance is $1,500.

Commission Earned				Acct. No. 406
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 24	Cash			8,000	8,000

Table (40)

The ending balance is $8,000.

Depreciation Expense Computer Equipment				Acct. No. 612
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (41)

The ending balance is $0.

Salaries Expense				Acct. No. 622
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 14	cash		1,600		1,600
April 28	cash		1,600		3,200

Table (42)

The ending balance is $3,200.

Insurance Expense				Acct. No. 637
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (43)

The ending balance is $0.

Rent Expense				Acct. No. 640
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 2	Cash		1,800		1,800

Table (44)

The ending balance is $1,800.

Office Supplies Expense				Acct. No. 650
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (45)

The ending balance is $0.

Repairs Expense				Acct. No. 684
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 29	Cash		350		350

Table (46)

The ending balance is $350.

Telephone expense				Acct. No. 688
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Cash		750		750

Table (47)

The ending balance is $750.

Income Summary				Acct. No. 901
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (48)

The ending balance is $0.

3.

To determine

To prepare:

An unadjusted trial balance.

Explanation of Solution

A Travel
Unadjusted Trial Balance
As on April 30, 2017
Particulars	Debit ($)	Credit ($)
Cash	27,000
Accounts Receivable	0
Office Supplies	1,000
Prepaid Insurance	2,400
Computer Equipment	20,000
Accumulated Depreciation-Computer Equipment		0
Salaries Payable		0
Common Stock		50,000
Retained earnings		0
Dividends	1,500
Commission Earned		8,000
Depreciation Expense-Computer Equipment	0
Salaries Expenses	3,200
Rent Expenses	1,800
Office Supply Expense	0
Repairs Expenses	350
Telephone Expense	750
Insurance Expense	0
Income Summary		0
Total	58,000	58,000

Table (49)

The total of Unadjusted Trial Balance on 30^th April, 2015 is $58,000.

4.

a.

To determine

To prepare:

Adjusting entry.

Explanation of Solution

Date	Particulars	Post ref	Debit ($)	Credit ($)
April 30	Insurance Expense		133
	Prepaid Insurance			133
	(Being insurance coverage worth $133has expired)

Table (50)

• Insurance expense is an expense. Since, expense reduces equity, debit insurance expense account.

• Prepaid Insurance is an asset. Since, some of the insurance used up, it reduces asset. Hence, credit prepaid insurance account.

b.

To determine

To prepare:

Adjusting entry.

Explanation of Solution

Date	Particulars	Post ref	Debit ($)	Credit ($)
April 30	Office Supplies Expense		400
	Office Supply			400
	(Being $400 worth of office Supplies got exhausted)

Table (51)

• Office supplies expense is an expense. Since, expense reduces equity, debit office supplies expense account.

• Office supplies are an asset. Since, some of asset used up, it reduces asset. Hence, credit office supply account.

Working note:

Calculation of office supply expense,

$\begin{array}{c}\text{Office}\text{Supply}\text{Expense}=\text{Total}\text{office}\text{Supply}-\text{ClosingOffice}\text{supply}\\ =\$1,000-\$600\\ =\$400\end{array}$

c.

To determine

To prepare:

Adjusting entry.

Explanation of Solution

Date	Particulars	Post ref	Debit ($)	Credit ($)
April 30	Depreciation Expense		500
	Accumulated Depreciation-Computer equipment			500
	(Being depreciation is recorded)

Table (52)

• Depreciation Expense is an expense. Since, expense reduces equity, debit depreciation expense account.

• Accumulated Depreciation-Computer equipment is a Contra asset. Since, it has a normal credit balance. Hence, credit accumulated depreciation-building account.

d.

To determine

To prepare:

Adjusting entry.

Explanation of Solution

Date	Particulars	Post ref	Debit ($)	Credit ($)
April 30	Salary Expense		420
	Salary Payable			420
	(Being salaries worth $420 due to be paid)

Table (53)

• Salary expense is an expense. Since, expense reduces equity, debit salary expense account.

• Salary Payable is a liability. Since, expense has occurred but not paid yet, it increases liability. Hence, credit salary payable account.

e.

To determine

To prepare:

Adjusting entry.

Explanation of Solution

Date	Particulars	Post ref	Debit ($)	Credit ($)
April 30	Accounts Receivable		1,750
	Commission earned			1,750
	(Being commission earned but not received yet)

Table (54)

• Accounts Receivable is an asset. Since income is earned but received yet, it increases asset. Hence, debit accounts receivable account.

• Commission earned is an income. Since money is earned, income is increased. Hence, credit commission earned account.

Posting of adjusting entries:

Cash				Acct. No. 101
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 1	Common Stock		30,000		30,000
April 2	Rent Expenses			1,800	28,200
April 3	Office supplies			1,000	27,200
April 10	Prepaid Insurance			2,400	24,800
April 14	Salary Expense			1,600	23,200
April 24	Commission earned		8,000		31,200
April 28	Salary Expense			1,600	29,600
29 April	Repair Expense			350	29,250
April 30	Telephone Expense			750	28,500
April 30	Dividend			1,500	27,000

Table (55)

The ending balance is $27,000.

Accounts Receivable				Acct. No. 106
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Commission Earned		1,750		1,750

Table (56)

The ending balance is $1,750.

Office Supplies				Acct. No. 124
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 3	Cash		1,000		1,000
April 30	Office Supply Expense			400	600

Table (57)

The ending balance is $600.

Prepaid Insurance				Acct. No. 128
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 10	Prepaid Insurance		2,400		2,400
April 30	Insurance Expense			133	2,267

Table (58)

The ending balance is $2,267.

Computer Equipment				Acct. No. 167
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 1	Common Stock		20,000		20,000

Table (59)

The ending balance is $20,000.

Accumulated depreciation Computer Equipment				Acct. No. 168
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Depreciation-computer equipment			500	500

Table (60)

The ending balance is $500.

Salaries Payable				Acct. No. 209
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Salary Expense			420	420

Table (61)

The ending balance is $420.

Common Stock				Acct. No. 307
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 1	Cash			30,000	30,000
April 1	Computer Equipment			20,000	50,000

Table (62)

The ending balance is $50,000.

Retained Earnings				Acct. No. 318
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (63)

The ending balance is $0.

Dividends				Acct. No. 319
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Cash		1,500		1,500

Table (64)

The ending balance is $1,500.

Commission Earned				Acct. No. 406
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 24	Cash			8,000	8,000
April 30	Accounts Receivable			1,750	9,750

Table (65)

The ending balance is $9,750.

Depreciation Expense Computer Equipment				Acct. No. 612
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Accumulated depreciation Computer Equipment		500		500

Table (66)

The ending balance is $500.

Salaries Expense				Acct. No. 622
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 14	cash		1,600		1,600
April 28	cash		1,600		3,200
April 30	Salary Payable		420		3,620

Table (67)

The ending balance is $3,620.

Insurance Expense				Acct. No. 637
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Prepaid Insurance		133		133

Table (68)

The ending balance is $133.

Rent Expense				Acct. No. 640
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 2	Cash		1,800		1,800

Table (69)

The ending balance is $1,800.

Office Supplies Expense				Acct. No. 650
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Office Supply		400		400

Table (70)

The ending balance is $400.

Repairs Expense				Acct. No. 684
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 29	Cash		350		350

Table (71)

The ending balance is $350.

Telephone expense				Acct. No. 688
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Cash		750		750

Table (72)

The ending balance is $750.

Income Summary				Acct. No. 901
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)

Table (73)

The ending balance is $0.

5.

To determine

To prepare:

An adjusted trial balance, income statement, statement of retained earnings and balance sheet.

Explanation of Solution

A Travel
Adjusted Trial Balance
As on April 30, 2015
Particulars	Debit ($)	Credit ($)
Cash	27,000
Accounts Receivable	1,750
Office Supplies	600
Prepaid Insurance	2,267
Computer Equipment	20,000
Accumulated Depreciation-Computer Equipment		500
Salaries Payable		420
Common Stock		50,000
Retained earnings		0
Dividends	1,500
Commission Earned		9,750
Depreciation Expense-Computer Equipment	500
Salaries Expenses	3,620
Rent Expenses	1,800
Office Supply Expense	400
Repairs Expenses	350
Telephone Expense	750
Insurance Expense	133
Income Summary		0
Total	58,920	58,920

Table (74)

The total of Adjusted Trial Balance on 30^th April, 2015 is $58,920.

Prepare Income Statement:

A Travel
Income Statement
For Month Ended April 30, 2015
Particulars	Amount ($)	Amount ($)
Revenue:
Service Revenue	9,750
Total Revenue		9,750
Expenses:
Insurance Expense	133
Salaries Expense	3,620
Office Supplies Expense	400
Rent expenses	1,800
Repairs Expense	350
Telephone Expense	750
Depreciation Expense-Computer Equipment	500
Total Expense		7,553
Net income		2,197

Table (75)

Net income is $2,197.

Prepare Retained Earnings Statement:

A Travel
Statement of Retained Earnings
For Month Ended September 30, 2015
Particulars	Amount ($)
Opening balance	0
Net income	2,197
	2,197
Dividends	(1,500)
Retained earnings	697

Table (76)

Therefore, Retained earnings of are $697.

Prepare Balance Sheet:

A Travel
Balance sheet
As on April 30, 2015
Particulars	Amount ($)	Amount ($)
Assets
Cash		27,000
Office Supplies		600
Account Receivables		1,750
Prepaid Insurance		2,267
Computer Equipment	20,000
Less: Accumulated depreciation	(500)	19,500
Total Assets		51,117
Liabilities and Stockholder’s Equity
Liabilities
Salaries Payable		420
Stockholder’s Equity
Common Stock	50,000
Retained earnings	697
Total stockholders’ equity		50,697
Total Liabilities and Stockholder’s equity		51,117

Table (77)

Balance sheet total is $51,117.

6.

To determine

To prepare:

Closing entries.

Explanation of Solution

Service Revenue transfer to income summary account for closing.

Date	Particulars	Post ref	Debit ($)	Credit ($)
April 30	Service Revenue		9,750
	Income Summary			9,750
	(Being service revenue transfer to income summary account)

Table (78)

• Service revenue is revenue account. Since, revenue is transferred to income summary account, it reduces revenue. Hence, debit service revenue account.

• Income summary is a temporary account. Since, it is used for closing revenue account. Hence, credit income summary account.

All expenses transfer to income summary account for closing.

Date	Particulars	Post ref	Debit ($)	Credit ($)
April 30	Income summary		7,553
	Insurance Expense			133
	Salaries Expense			3,620
	Office Supplies Expense			400
	Rent expenses			1,800
	Repairs Expense			350
	Telephone Expense			750
	Depreciation Expense-Computer Equipment			500
	(Being all expenses transfer to income summary account)

Table (79)

• Income summary is a temporary account. Since, it is used for closing expense account. Hence, debit income summary account.

• All expenses are expenses. Since, expenses are transferred to income summary account, expenses is reduced. Hence, credit all expenses account

Transfer to income summary account for closing.

Date	Particulars	Post ref	Debit ($)	Credit ($)
April 30	Income Summary		2,197
	Retained Earning			2,197
	(Being net income transfer to retained earnings)

Table (80)

• Income summary is a temporary account. Since, it is used for transferring net income summary to retained account. Hence, debit income summary account.

• Retained earnings come under stockholder’s equity. Since, retained earning has increased. Hence, credit retained earning account.

Deduct dividend from retained earnings.

Date	Particulars	Post ref	Debit ($)	Credit ($)
April 30	Retained Earning		1,500
	Dividend			1,500
	(Being dividend distributed)

Table (81)

• Retained earnings come under stockholder’s equity. Since, retained earnings is used to pay dividend, retained earnings has decreased. Hence, debit retained earnings account.

• Dividend is distributed from profit. Since it reduces retained earnings. Hence, credit dividend account.

To prepare ledger account for posting closing journal entries:

	Cash			Acct. No. 101
Date	Account Title and Explanation		Post ref	Debit ($)	Credit ($)	Balance ($)
April 1	Common Stock			30,000		30,000
April 2	Rent Expenses				1,800	28,200
April 3	Office supplies				1,000	27,200
April 10	Prepaid Insurance				2,400	24,800
April 14	Salary Expense				1,600	23,200
April 24	Commission earned			8,000		31,200
April 28	Salary Expense				1,600	29,600
29 April	Repair Expense				350	29,250
April 30	Telephone Expense				750	28,500
April 30	Dividend				1,500	27,000

Table (82)

The ending balance is $27,000.

Accounts Receivable				Acct. No. 106
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Commission Earned		1,750		1,750

Table (83)

The ending balance is $1,750.

Office Supplies				Acct. No. 124
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 3	Cash		1,000		1,000
April 30	Office Supply Expense			400	600

Table (84)

The ending balance is $600.

Prepaid Insurance				Acct. No. 128
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 10	Prepaid Insurance		2,400		2,400
April 30	Insurance Expense			133	2,267

Table (85)

The ending balance is $2,267.

Computer Equipment				Acct. No. 167
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 1	Common Stock		20,000		20,000

Table (86)

The ending balance is $20,000.

Accumulated depreciation Computer Equipment				Acct. No. 168
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Depreciation-computer equipment			500	500

Table (87)

The ending balance is $500.

Salaries Payable				Acct. No. 209
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Salary Expense			420	420

Table (88)

The ending balance is $420.

Common Stock				Acct. No. 307
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 1	Cash			30,000	30,000
April 1	Computer Equipment			20,000	50,000

Table (89)

The ending balance is $50,000.

Retained Earnings				Acct. No. 318
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Income Summary			2,197	2,197
April 30	Dividends		1,500		697

Table (90)

The ending balance is $697.

Dividends				Acct. No. 319
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Cash		1,500		1,500
April 30	Retained Earning			1500	0

Table (91)

The ending balance is $0.

Commission Earned				Acct. No. 406
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 24	Cash			8,000	8,000
April 30	Accounts Receivable			1,750	9,750
April 30	Income Summary		9,750		0

Table (92)

The ending balance is $0.

Depreciation Expense Computer Equipment				Acct. No. 612
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Accumulated depreciation Computer Equipment		500		500
April 30	Income Summary			500	0

Table (93)

The ending balance is $0.

Salaries Expense				Acct. No. 622
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 14	cash		1,600		1,600
April 28	cash		1,600		3,200
April 30	Salary Payable		420		3,620
April 30	Income Summary			3,620	0

Table (94)

The ending balance is $0.

Insurance Expense				Acct. No. 637
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Prepaid Insurance		133		133
April 30	Income Summary			133	0

Table (95)

The ending balance is $0.

Rent Expense				Acct. No. 640
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 2	Cash		1,800		1,800
April 30	Income Summary			1,800	0

Table (96)

The ending balance is $0.

Office Supplies Expense				Acct. No. 650
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Office Supply		400		400
April 30	Income Summary			400	0

Table (97)

The ending balance is $0.

Repairs Expense				Acct. No. 684
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 29	Cash		350		350
April 30	Income Summary			350	0

Table (98)

The ending balance is $0.

Telephone expense				Acct. No. 688
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Cash		750		750
April 30	Income Summary			750	0

Table (99)

The ending balance is $0.

Income Summary				Acct. No. 901
Date	Account Title and Explanation	Post ref	Debit ($)	Credit ($)	Balance ($)
April 30	Service Revenue			9,750
April 30	Insurance Expense		133		9,617
April 30	Salaries Expense		3,620		5997
April 30	Office Supplies Expense		400		5597
April 30	Rent expenses		1,800		3797
April 30	Repairs Expense		350		3447
April 30	Telephone Expense		750		2697
April 30	Depreciation Expense-Computer Equipment		500		2197
April 30	Retained Earnings			2197	0

Table (100)

The ending balance is $0.

7.

To determine

To prepare:

A post closing trial balance.

Explanation of Solution

A Travel
Post-Closing Trial Balance
As on April 30, 2017
Particulars	Debit ($)	Credit ($)
Cash	27,000
Accounts Receivable	1,750
Office Supplies	600
Prepaid Insurance	2,267
Computer Equipment	20,000
Accumulated Depreciation-Computer Equipment		500
Salaries Payable		420
Common Stock		50,000
Retained earnings		697
Dividends	0
Commission Earned		0
Depreciation Expense-Computer Equipment	0
Salaries Expenses	0
Rent Expenses	0
Office Supply Expense	0
Repairs Expenses	0
Telephone Expense	0
Insurance Expense	0
Income Summary		0
Total	51,617	51,617

Table (101)

The total of Post-Closing Trial Balance on 30^th April, 2015 is $51,617.