Question & Answer: Problem 3-6A Record closing entries and prepare a post-closing trial balance (LO3-6, 3-7) The following information applies to the ques…..

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Problem 3-6A Record closing entries and prepare a post-closing trial balance (LO3-6, 3-7) The following information applies to the questions displayed belowj The year-end financial statements of Rattlers Tax Services are provided below. RATTLERS TAX SERVICES Income Statement Service revenue $75,500 $45,600 Salarles Utilities Insurance Supplies 7800 5,400 1.900 60,700 Net income $14,800 RATTLERS TAX SERVICES Statement of Stockholders’ Equity Retained Earnings $ 24,100 Total Stockholders’ Equity s 80100 26,000 14,800 Common Stock $56,000 26,000 Beginning balance, Jan. Issue stock Net income 14,800 (5,600) (5,600) Ending balance, Dec 31 $82,000 33,300 $115,300

Expert Answer

Answer 1.

Journal Entry
Date	Particulars	Dr. Amt.	Cr. Amt.

31-Dec	Service Revenue Dr.	75,500
	To Income Summary		75,500
	(Record the entry to close the revenue account)

31-Dec	Income Summary Dr.	60,700
	To Salaries Expenses		45,600
	To Utilities Expenes		7,800
	To Insurance Expenses		5,400
	To Supplies Expenses		1,900
	(Record the entry to close the expenses account)

31-Dec	Income Summary Dr.	14,800
	To Retained Earnings		14,800
	(Record the profit transferred to retained earnings)

31-Dec	Retained Earnings Dr.	5,600
	To Dividends		5,600
	(record the dividend account closed)

Answer 2.

RATTLERS TAX SERVICES
Post-Closing Trial Balance
Accounts	Debit	Credit
Cash	4,300
Accounts Receivable	6,800
Land	110,000
Accounts Payable		5,800
Common Stock		82,000
Retained Earnings		33,300

Total	121,100	121,100

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