Question - Accounts of Pioneer Heating Corporation at the end of the first year of operations showed the following balances. In addition, prepaid operating expenses are 4000, and accrued sales commissions payable are $5900. Investment revenue receivable is $1000. Depreciation for the year on buildings is $4500 and on machinery, $5000. Federal and state income taxes for the year are estimated at $18100.
Debit Credit
Cash $39000
Inventory $50000
Investment $50000
Land $70000
Buildings $180000
Machinery $100000
Accounts payable $65000
Common Stock $320000
Additional paid-in capital $40000
Sales $590000
Cost of goods Sold $230000
Sales Commissions $200000
General Operating Expenses $101000
Investment Revenue $5000
Totals $1020000 $1020000
1. Prepare the necessary entries to adjust and close the books.
2. Prepare a post-closing trial balance.