Final Answer:
The post-closing trial balance for Dave's Dog Watching on December 31, 2022, shows Dave, Capital at $7,400 and the balances of permanent accounts, such as Cash ($2,000), Accumulated Depreciation ($1,500), Equipment ($5,000), Accounts Payable ($900), Accounts Receivable ($3,125), and Personal Trainer Fees ($4,350), reflecting the company's financial position after closing entries. Temporary accounts like Dave, Withdrawals, Wages Expense, and Supplies Expense have zero balances in the post-closing trial balance, indicating their successful closure.
Step-by-step explanation:
A post-closing trial balance is a crucial financial document prepared after the closing entries have been made at the end of an accounting period. The closing entries involve transferring the balances of temporary accounts (such as revenue, expense, and withdrawal accounts) to the owner's equity account, leaving the temporary accounts with zero balances. In the case of Dave's Dog Watching, the Dave, Capital account represents the owner's equity, and its balance after closing is $7,400. This figure reflects the net effect of revenues, expenses, and withdrawals on the owner's equity.
The permanent accounts, including Cash, Accumulated Depreciation, Equipment, Accounts Payable, Accounts Receivable, and Personal Trainer Fees, retain their balances from before the closing entries. For example, the Cash account has a balance of $2,000, and the Equipment account shows $5,000. These balances represent the assets and liabilities of the business that persist beyond the current accounting period.
On the other hand, temporary accounts like Dave, Withdrawals, Wages Expense, and Supplies Expense, have zero balances in the post-closing trial balance. This is because their balances were closed to the owner's equity during the closing process. For instance, the Wages Expense account, which previously had a balance of $2,250, has now been closed, leaving no residual amount in the post-closing trial balance.
In summary, the post-closing trial balance provides a concise overview of the company's financial position after the closing entries have been completed, ensuring that debits equal credits and all temporary accounts have been appropriately accounted for in the owner's equity.