Lesson FA-10-040-03 Financial Accounting Fundamentals ... · Lesson FA-10-040-03 Financial Accounting Fundamentals ... we will complete the closing entries and the post-closing trial

File: FA-10-040-03-Workbook.pdf

Title: Financial Acctng Fundamentals – Closing Entries and Post-Closing Trial Balance – Part 3

_____________________________________________________________________________________________ Copyright 2011 by Rocky Spears Enterprises LLC, All Rights Reserved Page 1 of 14 videos for this lesson are available at evideolearner.com Revised: 2011-05-24

Lesson FA-10-040-03

Financial Accounting Fundamentals -

Closing Entries and Post-Closing Trial Balance

Part 3

This workbook contains notes and worksheets

to accompany the corresponding video lesson

available online at:

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Copyright 2011 by Rocky Spears Enterprises LLC, All Rights Reserved Page 2 of 14 videos for this lesson are available at evideolearner.com Revised: 2011-05-24

Financial Accounting Fundamentals – Closing Entries and

Post-Closing Trial Balance – Part 3

[Clip 09] Comprehensive Problem 1 - January 20x0 - Closing Entries Overview

- Malorie Stylists

In this part of our lesson, we will complete the closing entries and the post-closing

trial balance for Comprehensive Problem 1 for Malorie Stylists for the month

ended January 31, 20x0

Recall, we journalized and posted financial transactions and completed a trial

balance for Malorie Stylists for January 20x0 in lesson FA-10-010 part 3.

We completed adjusting entries and an adjusted trial balance in lesson FA-10-020

part 3.

Then we completed financial statements from the adjusted trial balance in lesson

FA-10-030 part 3.

In this part of our lesson, we will write closing entries and construct a post-closing

trial balance using both the “Direct to Retained Earnings” approach and the

“Income Summary” approach.

In this clip, you are to write closing entries directly to retained earnings.

You will find the following in the workbook which accompanies this lesson.

Adjusted trial balance

T-accounts after adjusting entries are posted

Post-closing trial balance worksheet







General Journal

Date Description Debit Credit













Malorie Stylists

Post-Closing Trial Balance

January 31, 20x0

Balances

Account Debits Credits




[Clip 10] Comprehensive Problem 1 - January 20x0 - Closing Entries to

Retained Earnings - Malorie Stylists

Comprehensive Problem 1 – Malorie Stylists

Closing Entries & Post-Closing Trial Balance (see Appendix 1 for the Solution)

Instructions:

1. Write the closing entries for the revenue accounts, directly to Retained

Earnings

2. Post the journal entries to t-accounts

3. Write the closing entries for the expense accounts, directly to Retained

Earnings


After closing entries are journalized and posted, complete a post-closing trial

balance.

Complete the closing entries and post them to the t-accounts.

[Clip 11] Comprehensive Problem 1 - January 20x0 - Post-Closing Trial

Balance - Malorie Stylists

(see Appendix 1 for the Solution)

Complete the post-closing trial balance.




[Clip 12] Comprehensive Problem 1 - January 20x0 - Closing Entries to

Income Summary - Malorie Stylists

Comprehensive Problem 1 – Malorie Stylists

Closing Entries & Post-Closing Trial Balance (see Appendix 1 for the Solution)

Instructions:

1. Write the closing entries for the revenue accounts to Income Summary


3. Write the closing entries for the expense accounts to Income Summary


5. Write the closing entry to close the Income Summary account to

Retained Earnings

6. Post the journal entry to t-accounts

After closing entries are journalized and posted, complete a post-closing trial

balance.

Complete the closing entries and post them to the t-accounts.

[Clip 13] Comprehensive Problem 1 - January 20x0 - Post-Closing Trial

Balance - Malorie Stylists

(see Appendix 1 for the Solution)

Complete the post-closing trial balance.




APPENDIX 1 - SOLUTIONS

[Clip 10] Comprehensive Problem 1 - January 20x0 - Closing Entries to Retained Earnings - Malorie Stylists

SOLUTION:

Note: There are no dividends in this

problem, so there is no closing entry for

dividends.




[Clip 11] Comprehensive Problem 1 - January 20x0 - Post-Closing Trial Balance - Malorie Stylists

SOLUTION:




[Clip 12] Comprehensive Problem 1 - January 20x0 - Closing Entries to Income Summary - Malorie Stylists

SOLUTION:

Note: There are no dividends in this

problem, so there is no closing entry for

dividends.




[Clip 13] Comprehensive Problem 1 - January 20x0 - Post-Closing Trial Balance - Malorie Stylists

SOLUTION:

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Lesson FA-10-040-03 Financial Accounting Fundamentals ... · Lesson FA-10-040-03 Financial Accounting Fundamentals ... we will complete the closing entries and the post-closing trial