1. Closing Process:
a. Using the attached T-account template, labeled No. la: Document the trial balance below. Be sure to place
each account beneath the proper balance sheet category. Label each item "B" for balance. Then, prepare the
closing entries. Use an "income summary" account for the closing process.
b. Using the attached schedule labeled No. 1 b prepare a post-closing trial balance. You are encouraged, but
not required, to use an Excel spreadsheet. If you do, copy & paste it on the page provided.
ABC Company
Pre-closing Trial Balance
June 30, 2020
dedebit
credit
Cash
140,060
Accounts receivable
975
Prepaid Insurance
500
Equipment
2,400
Accounts payable
650
Unearned revenue
3,000
Common stock
130,000
Retained earnings
7,500
Dividends
4,000
Revenues
17,225
Rent expense
6,000
Salaries expense
1,600
Insurance Expense
1,150
Utilities expense
890
Internet & website expense
800
158,375
158,375