Explanation:
A. The preparation of the closing entries at June 30, 2015 is presented below:
1. Service Revenue A/c Dr $4,300
To Income Summary $4,300
(Being revenue account closed)
2. Income summary A/c Dr $3,500
To Supplies Expense $1,900
To Salaries and Wages Expense $1,344
To Miscellaneous Expense $256
(Being expenses accounts are closed)
3. Income summary A/c Dr $800 ($4,300 - $3,500)
To Retained earning $800
(Being the difference is credited to retained earning)
4. Retained earnings A/c Dr $628
To Dividend A/c $628
(Being dividend account is closed)
2. Now the post-closing trial balance is presented below:
Particulars Debit Credit
Cash $3,712
Accounts Receivable $3,904
Supplies $480
Accounts Payable $1,556
Unearned Service Revenue $160
Common Stock $4,000
Retained Earnings $1,932
Salaries and Wages Payable $448
Total $8,096 $8,096
The retained earnings is
= $1,760 + $800 - $628
= $1,932
