I am taking business accounting and need some extra help with it. I have to prepare a post closing trial balance, and not sure how to do it, my book doesn't explain how to do it very well.

Debits
Cash 13000
Shop supplies 1200
Prepaid insurance 1950
Equipment 48000
Ted Dunwood, withdrawals 15000
Amortization expense, equipment 4000
Wages expense 53500
Insurance expense 700
Rent expense 20800
Office supplies 2600
Utilities expense 1700


Credits
Accumulated amortization, equipment 4000
Accounts payable 12000
Wages payable 500
Repair fees earned 77750
Ted Dunwood, capital 68200


I have to get a total of 64150 but I keep getting a way higher total and not sure why. Plus the totals for credits and debits are different.
If I could just get an idea of how to do it, with out my numbers that is fine, this is just not making any sense.

A Post Closing Trial Balance is a Trial Balance once you close certain accounts.

All Income Statement accounts get closed (Sales, Expenses)…
All Balance Sheet accounts do NOT get closed.

Therefore, the following accounts will be closed into your Ted Dunwood, Capital account.

wages expense 53500
insurance expense 700
rent expense 20800
office supplies 2600
utilities expense 1700
repair fees earned 77750


The expenses will be credited (so debit to capital), and revenue is debited (so credit to capital)

So changes to your capital account are:
Debit 79,300
Credit 77,750

Also, you must close your drawings account.

Therefore, the new Post Closing Trial Balance will be:


Debits
cash 13000
shop supplies 1200
prepaid insurance 1950
equipment 48000
amortization expense, equipment 4000

Total = 68,150

credits
accumulated amortization, equipment 4000
accounts payable 12000
wages payable 500
Ted Dunwood, capital 68200 + 77,750 – 79,300 – 15,000 (drawings) = 51,650

Total = 68,150


You say it should be 64,150? Did you mis type? If you didn't, perhaps I made an error somewhere with my numbers.

My post clsoing trial balance does not balanc and I am off by 500 dollars and do I include all payables in my post closing trial balance after I did adj entries and closing entires? I have more than one paybale. I do have owner cap and drawing. Please let me know. I am taking intermediate accounting 1 class course at MATC CAMUps in milwaukee wi,

Your owners drawing account should be closed to the owners capital account, so credit your drawing account for the amount in the account and Debit your capital account for the same amount.

Do you include owner capital number in post closing trial balance. And if you more than 1 payable do you them list all paybale with a credit balance in post closing trial balance.

What do you inclide in post closing trial balance? Please tell me. This is not my homework

Do you include equip asset
And acc dep-equip as credit in post closing trial bal or not? Yes or no

Where do you do thiis step? What financial statement do u do this. Please tell me and help me out
Your owners drawing account should be closed to the owners capital account, so credit your drawing account for the amount in the account and Debit your capital account for the same amount.

Quote:

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Originally Posted by pready

Your owners drawing account should be closed to the owners capital account, so credit your drawing account for the amount in the account and Debit your capital account for the same amount.

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So should I use the drawing acct number for example 2,000 to do and to use. What you saying or what? Please let me know

So if I understand you.. so I should do this let meknow if this is right or not

Teresa Capital, 2000 Dr
Teresa Drawing 2000 Cr is that right when you do closing entries drawing

Do you include owner capital number in post closing trial balance. And if you more than 1 payable do you them list all paybale with a credit balance in post closing trial balance.

What do you inclide in post closing trial balance? Please tell me. This is not my homework

Do you include equip asset
And acc dep-equip as credit in post closing trial bal or not? Yes or no

Where do you do thiis step? What financial statement do u do this. Please tell me and help me out
Your owners drawing account should be closed to the owners capital account, so credit your drawing account for the amount in the account and Debit your capital account for the same amount

The closing process is closing your temporary accounts i.e. income statement accounts to the balance sheet.

So: You close out your revenues to the Income Summary account, then close out your expense accounts to the Income Summary account.

Next you close out your Income Summary account to Retained Earnings.

Next you close out your dividends or drawings account to your Owners Equity account or Owners Capital account.

Finally for your post closing trial balance will list all of your balance sheet accounts only with their debit and credit balances, with a total balance of your debits and credits, which must equal.

The closing process is done after you have prepared your financial reports at the end of the accounting period to basically reset your income statement accounts to a zero balance to start a new accounting period. The Income Statement covers a period, while a balance sheet shows a specific point in time.