Closing Entries

I have completed this accounting assignment, I just need help with my closing entries.  Needed ASAP.

Trial Balance

– Current Year

Trial Balance

50,000

(due in 10 months, 5%)

500,000

150,000

Smith Manufacturing, Inc.

December 31, 20XX

DR

CR

Cash

362,750

Accounts receivable

320,750

Allowance for uncollectible accounts

1

5,000

Prepaid insurance

10,000

Inventory

30,000

Land

50,000

Building

150,000

Accumulated depreciation-building

7,500

Equipment

500,000

Accumulated depreciation-equipment

Accounts payable

105,000

Note payable

125,000

Salaries payable

Interest payable

Note payable (due in 5 years, 3%)

Common Stock (3,000 shares outstanding)

300,000

Retained earnings

171,000

Sales revenue

850,000

Cost of goods sold

550,000

Salaries expense

Insurance expense

Depreciation expense

Interest expense

Bad debt expense

Totals

2,1

23,500

2,123,500

Trial Balnce – Prior Year

Smith Manufacturing, Inc.

December 31, 20XX
DR CR

Cash

Accounts receivable

Allowance for uncollectible accounts

Prepaid insurance 5,000
Inventory

Land 50,000
Building 150,000
Accumulated depreciation-building 7,500
Equipment 500,000
Accumulated depreciation-equipment 50,000

Accounts payable

Note payable 50,000
Salaries payable 5,000
Interest payable

Note payable (due in 5 years, 3%)

Common Stock (3,000 shares outstanding) 300,000
Retained earnings 171,000

Sales revenue
Cost of goods sold
Salaries expense

Insurance expense
Depreciation expense
Interest expense
Bad debt expense

Totals

1,025,750

	Post-Closing Trial Balance
		15,000
225,750
20,000
80,000
55,000
17,250
350,000
	1,025,750

Answer

DR

CR 8,500

DR

CR 2,000

)

Inventory DR 10,000

CR 10,000

-30,000)

DR

CR 7,500

CR 50,000

DR

CR 21,250

DR 2,000

CR 2,000

Trial Balance DR CR DR CR DR CR
Cash 362,750 362,750

320,750 320,750

Allowance for Uncollectible Accounts 15,000 8,500 23,500
Prepaid Insurance 10,000 2,000 8,000
Inventory 30,000 10,000 40,000
Land 50,000 50,000
Building 150,000 150,000
Accumulated depreciation-building 7,500 7,500 15,000
Equipment 500,000 500,000
Accumulated depreciation-equipment 50,000 50,000

Accounts payable 105,000 105,000

125,000 125,000

Salaries payable 2,000 2,000
Interest payable 21,250 21,250
Note payable (due in 5 years, 3%) 500,000 500,000

300,000 300,000

Retained earnings 171,000 171,000
Sales revenue 850,000 850,000
Cost of goods sold 550,000 10,000

Salaries expense 150,000 2,000

Insurance expense 2,000 2,000
Depreciation expense 57,500 57,500
Interest expense 21,250 21,250
Bad debt expense 8,500 8,500
2,123,500 2,123,500

101,250

2,212,750

Smith Manufacturing, Inc.
Post-Closing Trial Balance
December 31, 20XX
DR CR
Cash 362,750
Accounts receivable 320,750

Allowance for uncollectible accounts 23,500
Prepaid insurance 8,000
Inventory 40,000

Land 50,000
Building 150,000
Equipment 500,000

Accumulated depreciation-building 15,000
Accumulated depreciation-equipment 100,000

Accounts payable 105,000
Note payable (due in 10 months, 5%) 125,000

Salaries payable 2,000
Interest payable 21,250

Note payable (due in 5 years, 3%) 500,000
Common Stock (3,000 shares outstanding) 300,000

Retained earnings

Totals

1,431,500

Adjusting Entries
Bad Debt Expense					8,500
	Allowance for Uncollectible Accounts
(850,000 x 1%)
Insurance Expense											2,000
	Prepaid Insurance
(10,000-		8,000
Cost of Goods Sold
(		40,000
Depreciation Expense			57,500
Accumulated Depreciation-Building
Accumulated Depreciation-Equip.
Building (150,000/20)
Equipment (500,000/10)
Interest Expense							21,250
Interest Payable
(125,000 x 5%) + (500,000 + 3%)
Salary Expense
Salary Payable
Unadjusted Balance	Adjusted Entries	Closing Balance
Accounts Receivable
	100,000
	Note payable (due in 10 months, 5%)
Common Stock (3,000 shares)
540,000
152,000
	101,250		2,212,750
239,750
	1,431,500
– 0