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Sagot :
The preparation of a classified statement of financial position (balance sheet), closing entries, and post-closing trial balance is as follows:
a. Â Statement of Financial Position (Balance Sheet)
As of September 30, 2020
Assets:
Current Assets:
Cash                       $37,400
Inventory                     4,200
Supplies                     6,200
Accounts Receivable          11,000
Prepaid Insurance             3,900   $62,700
Long-term Assets:
Land                       70,000
Equipment                 120,000
Accumulated Depreciation    (18,600)
Patent                     80,000
Other assets                13,800  $265,200
Total assets                       $327,900
Liabilities and Equity:
Current Liabilities:
Accounts payable            42,000
Interest payable              19,600
Salaries and wages payable    6,000
Unearned rent revenue        4,100   $71,700
Long-term Liabilities:
Mortgage payable (due 2024) Â Â Â Â Â Â Â Â 79,000
Total liabilities                     $150,700
Equity:
Capital                   109,700
Retained earnings          67,500 $177,200
Total liabilities and equity         $327,900
b) Closing Journal Entries:
Debit Sales revenue $240,500
Credit Statement of Financial Performance $240,500
Debit Statement of Financial Performance $123,500
Credit Cost of goods sold $123,500
Debit Rent revenue $14,400
Credit Statement of Financial Performance $14,400
Debit Expenses:
Depreciation Expense $7,800
Insurance Expense $18,000
Supplies Expense $14,400
Interest Expense $12,000
Salaries and Wages Expense $21,900
Credit Statement of Financial Performance $74,100
Debit Credit Statement of Financial Performance $57,300
Credit Retained Earnings $57,300
c) Post-Closing Trial Balance
Account Titles                 Debit     Credit
Cash                       $37,400
Inventory                     4,200
Supplies                     6,200
Accounts Receivable          11,000
Prepaid Insurance             3,900
Long-term Assets:
Land                       70,000
Equipment                 120,000
Accumulated Depreciation             $18,600
Patent                     80,000
Other assets                13,800
Accounts payable                     42,000
Interest payable                      19,600
Salaries and wages payable             6,000
Unearned rent revenue                 4,100
Mortgage payable (due 2024) Â Â Â Â Â Â Â Â Â 79,000
Capital                            109,700
Retained earnings                   67,500
Totals                  $327,900  $327,900
Data and Calculations:
Trial Balance
Cash                       $37,400
Inventory                     4,200
Supplies                     6,200
Accounts Receivable          11,000
Prepaid Insurance             3,900
Land                       70,000
Equipment                 120,000
Patent                     80,000
Other assets                13,800
Accumulated Depreciation- Equipment $18,600
Cost of goods sold          123,500
Depreciation Expense         7,800
Insurance Expense          18,000
Supplies Expense           14,400
Interest Expense            12,000
Salaries and Wages Expense 21,900
Accounts payable                   42,000
Mortgage payable (due 2024) Â Â Â Â Â Â Â Â 79,000
Interest payable                    19,600
Salaries and wages payable           6,000
Unearned rent revenue               4,100
Dividends                4,800
Capital                          109,700
Retained earnings, Oct. 1, 2019 Â Â Â Â Â Â 15,000
Sales revenue                   240,500
Rent revenue                     14,400
Totals              $548,900  $548,900
Statement of Financial Performance (Income Statement)
For the year ended September 30, 2020
Sales revenue            $240,500
Cost of goods sold          123,500
Gross profit               $117,000
Rent revenue               14,400
Total income              $131,400
Expenses:
Depreciation Expense        7,800
Insurance Expense          18,000
Supplies Expense           14,400
Interest Expense            12,000
Salaries and Wages Expense 21,900
Total Expenses            $74,100
Net Income              $57,300
Statement of Retained Earnings:
Retained earnings, Oct. 1, 2019 Â $15,000
Net income                   57,300
Dividends                    (4,800)
Retained earnings, Sept. 30, Â Â $67,500
Learn more: https://brainly.com/question/13408214
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