File: FA-10-040-03-Workbook.pdf
Title: Financial Acctng Fundamentals – Closing Entries and Post-Closing Trial Balance – Part 3
Lesson FA-10-040-03
Financial Accounting Fundamentals Closing Entries and Post-Closing Trial Balance
Part 3
This workbook contains notes and worksheets
to accompany the corresponding video lesson
available online at:
Permission is granted for educators and students to
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Copyright 2011 by Rocky Spears Enterprises LLC, All Rights Reserved
Page 1 of 14
videos for this lesson are available at evideolearner.com
Revised: 2011-05-24
File: FA-10-040-03-Workbook.pdf
Title: Financial Acctng Fundamentals – Closing Entries and Post-Closing Trial Balance – Part 3
Financial Accounting Fundamentals – Closing Entries and
Post-Closing Trial Balance – Part 3
[Clip 09] Comprehensive Problem 1 - January 20x0 - Closing Entries Overview
- Malorie Stylists
In this part of our lesson, we will complete the closing entries and the post-closing
trial balance for Comprehensive Problem 1 for Malorie Stylists for the month
ended January 31, 20x0
Recall, we journalized and posted financial transactions and completed a trial
balance for Malorie Stylists for January 20x0 in lesson FA-10-010 part 3.
We completed adjusting entries and an adjusted trial balance in lesson FA-10-020
part 3.
Then we completed financial statements from the adjusted trial balance in lesson
FA-10-030 part 3.
In this part of our lesson, we will write closing entries and construct a post-closing
trial balance using both the “Direct to Retained Earnings” approach and the
“Income Summary” approach.
In this clip, you are to write closing entries directly to retained earnings.
You will find the following in the workbook which accompanies this lesson.
Adjusted trial balance
T-accounts after adjusting entries are posted
Post-closing trial balance worksheet
Copyright 2011 by Rocky Spears Enterprises LLC, All Rights Reserved
videos for this lesson are available at evideolearner.com
Page 2 of 14
Revised: 2011-05-24
File: FA-10-040-03-Workbook.pdf
Title: Financial Acctng Fundamentals – Closing Entries and Post-Closing Trial Balance – Part 3
Copyright 2011 by Rocky Spears Enterprises LLC, All Rights Reserved
videos for this lesson are available at evideolearner.com
Page 3 of 14
Revised: 2011-05-24
File: FA-10-040-03-Workbook.pdf
Title: Financial Acctng Fundamentals – Closing Entries and Post-Closing Trial Balance – Part 3
General Journal
Date
Description
Copyright 2011 by Rocky Spears Enterprises LLC, All Rights Reserved
videos for this lesson are available at evideolearner.com
Debit
Credit
Page 4 of 14
Revised: 2011-05-24
File: FA-10-040-03-Workbook.pdf
Title: Financial Acctng Fundamentals – Closing Entries and Post-Closing Trial Balance – Part 3
Copyright 2011 by Rocky Spears Enterprises LLC, All Rights Reserved
videos for this lesson are available at evideolearner.com
Page 5 of 14
Revised: 2011-05-24
File: FA-10-040-03-Workbook.pdf
Title: Financial Acctng Fundamentals – Closing Entries and Post-Closing Trial Balance – Part 3
Copyright 2011 by Rocky Spears Enterprises LLC, All Rights Reserved
videos for this lesson are available at evideolearner.com
Page 6 of 14
Revised: 2011-05-24
File: FA-10-040-03-Workbook.pdf
Title: Financial Acctng Fundamentals – Closing Entries and Post-Closing Trial Balance – Part 3
Copyright 2011 by Rocky Spears Enterprises LLC, All Rights Reserved
videos for this lesson are available at evideolearner.com
Page 7 of 14
Revised: 2011-05-24
File: FA-10-040-03-Workbook.pdf
Title: Financial Acctng Fundamentals – Closing Entries and Post-Closing Trial Balance – Part 3
Malorie Stylists
Post-Closing Trial Balance
January 31, 20x0
Balances
Account
Debits
Copyright 2011 by Rocky Spears Enterprises LLC, All Rights Reserved
videos for this lesson are available at evideolearner.com
Credits
Page 8 of 14
Revised: 2011-05-24
File: FA-10-040-03-Workbook.pdf
Title: Financial Acctng Fundamentals – Closing Entries and Post-Closing Trial Balance – Part 3
[Clip 10] Comprehensive Problem 1 - January 20x0 - Closing Entries to
Retained Earnings - Malorie Stylists
Comprehensive Problem 1 – Malorie Stylists
Closing Entries & Post-Closing Trial Balance
(see Appendix 1 for the Solution)
Instructions:
1.
Write the closing entries for the revenue accounts, directly to Retained
Earnings
2.
Post the journal entries to t-accounts
3.
Write the closing entries for the expense accounts, directly to Retained
Earnings
4.
Post the journal entries to t-accounts
After closing entries are journalized and posted, complete a post-closing trial
balance.
Complete the closing entries and post them to the t-accounts.
[Clip 11] Comprehensive Problem 1 - January 20x0 - Post-Closing Trial
Balance - Malorie Stylists
(see Appendix 1 for the Solution)
Complete the post-closing trial balance.
Copyright 2011 by Rocky Spears Enterprises LLC, All Rights Reserved
videos for this lesson are available at evideolearner.com
Page 9 of 14
Revised: 2011-05-24
File: FA-10-040-03-Workbook.pdf
Title: Financial Acctng Fundamentals – Closing Entries and Post-Closing Trial Balance – Part 3
[Clip 12] Comprehensive Problem 1 - January 20x0 - Closing Entries to
Income Summary - Malorie Stylists
Comprehensive Problem 1 – Malorie Stylists
Closing Entries & Post-Closing Trial Balance
(see Appendix 1 for the Solution)
Instructions:
1.
Write the closing entries for the revenue accounts to Income Summary
2.
Post the journal entries to t-accounts
3.
Write the closing entries for the expense accounts to Income Summary
4.
Post the journal entries to t-accounts
5.
Write the closing entry to close the Income Summary account to
Retained Earnings
6.
Post the journal entry to t-accounts
After closing entries are journalized and posted, complete a post-closing trial
balance.
Complete the closing entries and post them to the t-accounts.
[Clip 13] Comprehensive Problem 1 - January 20x0 - Post-Closing Trial
Balance - Malorie Stylists
(see Appendix 1 for the Solution)
Complete the post-closing trial balance.
Copyright 2011 by Rocky Spears Enterprises LLC, All Rights Reserved
videos for this lesson are available at evideolearner.com
Page 10 of 14
Revised: 2011-05-24
File: FA-10-040-03-Workbook.pdf
Title: Financial Acctng Fundamentals – Closing Entries and Post-Closing Trial Balance – Part 3
APPENDIX 1 - SOLUTIONS
[Clip 10] Comprehensive Problem 1 - January 20x0 - Closing Entries to Retained Earnings - Malorie Stylists
SOLUTION:
Note: There are no dividends in this
problem, so there is no closing entry for
dividends.
Copyright 2011 by Rocky Spears Enterprises LLC, All Rights Reserved
videos for this lesson are available at evideolearner.com
Page 11 of 14
Revised: 2011-05-24
File: FA-10-040-03-Workbook.pdf
Title: Financial Acctng Fundamentals – Closing Entries and Post-Closing Trial Balance – Part 3
[Clip 11] Comprehensive Problem 1 - January 20x0 - Post-Closing Trial Balance - Malorie Stylists
SOLUTION:
Copyright 2011 by Rocky Spears Enterprises LLC, All Rights Reserved
videos for this lesson are available at evideolearner.com
Page 12 of 14
Revised: 2011-05-24
File: FA-10-040-03-Workbook.pdf
Title: Financial Acctng Fundamentals – Closing Entries and Post-Closing Trial Balance – Part 3
[Clip 12] Comprehensive Problem 1 - January 20x0 - Closing Entries to Income Summary - Malorie Stylists
SOLUTION:
Note: There are no dividends in this
problem, so there is no closing entry for
dividends.
Copyright 2011 by Rocky Spears Enterprises LLC, All Rights Reserved
videos for this lesson are available at evideolearner.com
Page 13 of 14
Revised: 2011-05-24
File: FA-10-040-03-Workbook.pdf
Title: Financial Acctng Fundamentals – Closing Entries and Post-Closing Trial Balance – Part 3
[Clip 13] Comprehensive Problem 1 - January 20x0 - Post-Closing Trial Balance - Malorie Stylists
SOLUTION:
Copyright 2011 by Rocky Spears Enterprises LLC, All Rights Reserved
videos for this lesson are available at evideolearner.com
Page 14 of 14
Revised: 2011-05-24
