Preparing Closing entries Using Journal Entries and T-Accounts
The adjusted trial balance at December 31, 2015, for Smith Company includes the following selected amounts.
Adjusted Account Balances Debit Credit
Commissions revenue .......................................... CREDIT: $84,900
Wages expense ...............................................DEBIT:$36,000
Insurance expense............................................DEBIT:.1,900
Utilities expense...............................................DEBIT:8,200
Depreciation expense...........................................DEBIT:9,800
Retained earnings ............................................. CREDIT:72,100
a. Prepare entries to close these accounts in journal entry form.
b. Set up T-accounts for each of these ledger accounts, enter the balances above, and post the closing entries to them. After these entries are posted, what is the post-closing balance of the Retained Earnings account?