Question

Problem 6.4A (Algo) Worksheet, journalizing and posting adjusting and closing entries, and the postclosing trial balance. LO 6-1, 6-2

A partially completed worksheet for At Home Pet Grooming Service, a firm that grooms pets at the owner's home, follows
Required:
1. Complete the worksheet
2. Record the adjusting entries in the general journal (transactions 1-3). 3. Record the closing entries in the general journal (transactions 4-7)
4. Post the adjusting entries and the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances.
5. Prepare a postclosing trial balance
Analyze:
What total debits were posted to the general ledger to complete all closing entries for the month of December?
Complete this question by entering your answers in the tabs below.
Reg 1
Red 2 and 3
Reg 4
Req 5
Analyze

Answer 1

The problem involves steps in the accounting cycle for At Home Pet Grooming Service, including adjusting and closing entries, and preparing a postclosing trial balance. These steps ensure accurate financial reporting and set accounts correctly for the new period.

Step-by-step explanation:

The question relates to the accounting process at the end of a financial period, which includes completing a worksheet, journalizing, and posting adjusting and closing entries, and preparing a postclosing trial balance for At Home Pet Grooming Service. The steps involved in this process are important for ensuring that the financial statements accurately reflect the company's financial status at the end of an accounting period.

1. Completing the worksheet involves finalizing all the accounts with their respective adjustments to reflect the true financial state of the business at the period end.
2. Adjusting entries are required to update the accounting records for items that have been earned or incurred but not yet recorded.
3. The closing entries involve transferring the balances of temporary accounts (revenues, expenses, and dividends or withdrawals) to the owner's equity account to prepare for the next accounting period.
4. Posting entries to the general ledger updates the account balances ahead of preparing the financial statements.
5. Finally, a postclosing trial balance is prepared to verify that total debits equal total credits and all temporary accounts have been closed.

For the analytical part, the total debits posted to complete the closing entries would be calculated by summing the debit amounts in the closing entries that are posted to the general ledger for the month of December. The question requires knowledge of adjustment and closing processes, as well as the ability to analyze ledger postings.

Answer 2

The question requires completing a worksheet, recording adjusting and closing entries in the general journal, posting them to the general ledger, and preparing a post closing trial balance for At Home Pet Grooming Service.

Step-by-step explanation:

The student is asked to complete a worksheet for At Home Pet Grooming Service, including adjusting entries, closing entries, and preparing a postclosing trial balance. This is a multi-step process that involves understanding the foundational aspects of accounting, such as debits, credits, and the general ledger.

Steps to Complete the Worksheet and Journal Entries

1. Fill in the missing information on the worksheet to balance debits and credits.
2. Record the adjusting entries for transactions 1-3 in the general journal. These could include accrued expenses, prepaid expenses, or revenue earned but not yet received.
3. Journalize the closing entries for transactions 4-7. Closing entries involve transferring balances from temporary accounts to permanent accounts.
4. Post these adjusting and closing entries to the general ledger accounts, starting with the beginning balances.
5. Prepare a post closing trial balance, ensuring that only permanent account balances are listed and the debits equal credits.

Analyze the total debits posted to the general ledger account during the closing entries by adding only those entries.