Question

The adjusted trial balance columns of the worksheet for Bridgeport Company are as follows.
Bridgeport Company
Worksheet (Partial)
For the Month Ended April 30, 2019
Adjusted Trial Balance
Account Titles Dr. Cr.
Cash 10,000
Accounts Receivable 8,080
Prepaid Rent 2,500
Equipment 22,700
Accumulated Depreciation—Equip. 5,500
Notes Payable 5,700
Accounts Payable 5,500
Common Stock 19,460
Retained Earnings 8,100
Dividends 3,400
Service Revenue 15,000
Salaries and Wages Expense 10,980
Rent Expense 900
Depreciation Expense 700
Interest Expense 60
Interest Payable 60
Totals 59,320 59,320
Journalize the closing entries at April 30.
Post the closing entries to Income Summary and Retained Earnings.
Prepare a post-closing trial balance at April 30.

Answer 1

Answer:

The purpose of the post closing trial balance is to verify thtat the debit totals equal credit totals of the permananet accounts and temperoray accounts have zero balances.

Explanation:

Bridgeport Company

Closing Entries

Date               Particulars                             Debit             Credit

Apr 30            Income Summary             12,640

                            Common Stock 19,460

                             Salaries & Wages Expense               10,980

                                          Rent Expense                         900

                                         Depreciation Expense              700

                                             Interest Expense                  60

                         

Closing Expense Accounts to Income Summary

                             Service Revenue           15,000

                                      Income Summary                              15,000

Closing Revenue Accounts to Income Summary

                           Retained Earnings      8,100

                                Income Summary                           8100

To close retained earnings to income summary

                                   Retained Earnings           3400

                                              Dividends                                   3400

To close dividends

Bridgeport Company

Post Closing Trial Balance              

                                                           Debit           Credit

Cash                                                10,000

Accounts Receivable                     8,080

Prepaid Rent                                  2,500

Equipment                                     22,700

Accumulated Depreciation—Equip.                       5,500

Common Stock                                                      19,460

Notes Payable                                                         5,700

Accounts Payable                                                   5,500

Interest Payable                                                         60

Capital / RE                                                               7060

Total                                              43280               43280