Adjusted Trial Balance to Post Closing Trial Balance Case Study

Adjusted Trial Balance

adjusted trial balance



Prepare Cookie Creations’ Income Statement (Simple) for the month of November, 2017

income statement



Comments on Income Statement for the month of November, 2017:

Cookie Creations has been profitable in November. It has a profit of $215 which is almost equal to one half of the revenue earned in November.

 

Prepare Cookie Creations’ Balance Sheet (Simple mixed order) as on November, 2017

balance sheet

 

Nancy had a very busy December. At the end of the month, Nancy prepared an adjusted trial balance.

adjusted trial balance

 

Comparative Adjusted Trial Balance for the month of November and December, 2017

comparative adjusted trial balance

 

Prepare an income statement for the 2 months ended December 31, 2017

statement of comprehensive income

 

Retained Earnings for the 2 months ended December 31, 2017

statement of retained earning

 

Classified Statement of Financial Position as on December 31, 2017 (Order of permanence)

The note payable has a stated interest rate of 6%, and the principal and interest are due on November 16, 2019

statement of financial position

 

Pass Closing Entries at December 31, 2017

closing entries

 

Make Ledger Account for Income Summary and Retained Earnings at December 31, 2017

income summary account

 

retained earnings account

 

Prepare a Post-Closing Trial Balance on December 31, 2017

post closing trial balance

 

>>> Read Current Assets

References

Mukharji, A., & Hanif, M. (2003). Financial Accounting (Vol. 1). New Delhi: Tata McGraw-Hill Publishing Co.

Narayanswami, R. (2008). Financial Accounting: A Managerial Perspective. (3rd, Ed.) New Delhi: Prentice Hall of India.

Ramchandran, N., & Kakani, R. K. (2007). Financial Accounting for Management. (2nd, Ed.) New Delhi: Tata McGraw Hill.

1 Comment

  1. Very nice notes

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