Reference no: EM132678180

Problem 1: Focus Consulting has journalized their adjusting entries and prepared their adjusted trial balance. Using the adjusted trial balance, prepare the closing entries using the income summary account for the month of September and create the post-closing trial balance.

Cash                                $6,800 Dr
Accounts Receivable            $1,580 Dr
Prepaid Insurance                $1,840 Dr
Equipment                            $10,280 Dr
Accumulated Depreciation                                  $400 Cr
Accounts Payable                                             $1,370 Cr
Interest Payable                                                 $130 Cr
Unearned Revenue                                            $1,110 Cr
Bank Loan                                                        $2,950 Cr
Nichols, Capital                                               $11,670 Cr
Nichols, Withdrawals                     $700 Dr
Service Revenue                            $5,920 Cr
Depreciation Expense                     $210 Dr
Insurance Expense                         $320 Dr
Interest Expense                               $130 Dr
Office Supplies Expense                       $470 Dr
Rent Expense                                 $920 Dr
Telephone Expense                               $300 Dr
Total                                           $23,550 Dr/                  $23,550 Cr

• When closing accounts, use the income summary method.
• For the closing of the expense accounts, enter the expense accounts in alphabetical order.