The Adjusted Trial Balance of J Instructions
Using the Information Given Prepare the Year-End Closing Entries

question 93

Essay

The adjusted trial balance of J. W. Hatch Company appears below. $\begin{array}{c}\text { J. W. HATCH}\\\text { Adjusted Trial Balance}\\\text { December 31, 2016}\\\\\begin{array}{lrr}& \text {Debit}& \text {Credit}\\\text { Cash } & 12,000 \\\text { Accounts Receivable } & 25,000 & \\\text { Inventory } & 35,000 & \\\text { Buildings } & 140,000 & \\\text { Accumulated Depreciation- } & & \\\quad \text { Buildings } & & 20,000 \\\text { Accounts Payable } & & 12,000 \\\text { Owner's Capital } & & 144,000 \\\text { Owner's Drawings } &30,000 & \\\text { Sales Revenue } & &310,000 \\ \text { Sales Discounts } &6,000\\\text { Sales Returns \& Allowances } & 8,000 & \\\text { Cost of Goods Sold } & 188,000 & \\\text { Operating Expenses } & 42,000 & \\& 486,000 & 486,000 \end{array}\end{array}$ Instructions
Using the information given prepare the year-end closing entries.

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Definitions:

Times Interest Earned Ratio

A financial metric that evaluates how well a company can cover its interest expenses with its earnings before interest and taxes.

Net Income

Net income, also known as net profit, is the total profit of a company after all revenues, costs, and expenses have been deducted.

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the interest payments on debt over a particular period.

Par Value

A nominal or face value assigned to a share of stock by the corporation's charter, different from the market value.