explanation.
that have been made in journal form without givis
2. Prepare a balance sheet for December 31, 2010.
PTER 4 Completing the Accounting Cycle
Problems
L01 LO2 Preparation of Closing Entries
P1. Affordable Trailer Rental rents small trailers by the day for local moving jobs.
This is its adjusted trial balance at the end of the current fiscal year:
Affordable Trailer Rental
Adjusted Trial Balance
June 30, 2011
Cash
$ 692
Accounts Receivable
972
Supplies
119
Prepaid Insurance
360
Trailers
12,000
Accumulated Depreciation-Trailers
$ 7,200
Accounts Payable
271
Wages Payable
200
A. Tropp, Capital
5,694
A. Tropp, Withdrawals
7,200
Trailer Rentals Revenue
45,546
Wages Expense
23,400
Insurance Expense
720
Supplies Expense
266
Depreciation Expense-Trailers
2,400
Other Expenses
10,782
$58,911
$58,911
Required
1. From the information given, record closing entries in journal form.
2. If closing entries were not prepared at the end of the accounting period, what
problems would result in the next accounting period?