Chapter 4 homework
Use Excel.
1 Create an adjusted trial balance. (hint use very few accounts 3 asset, 2 liability, 3 stockholder’s equity, 1 revenue, 2 expense) Do not do the worksheet that is in problem 1 (a). You must have the contra accounts dividends and accumulated depreciation-eq. Make up the numbers. It must balance.
2. Create an income statement, retained earnings statement and classified balance sheet. Use 1-21 in the e-book as a guide or look at the homework you manually did from chapter 2.
3. Journalized the closing entries. Zero out the income statement accounts (Revenue & Expenses) to income summary, then zero out income summary to retained earnings. Zero out dividends to retained earnings. (You have just increased the equity of the company by the net income, minus what was given to the owners.)
4. Assume you posted the closing journal entires to the ledger and zeroed out the revenue, expense and dividend accounts. Create a post closing trial balance.
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