Presented Below Is an Adjusted Trial Balance for Shawn Company

question 115

Essay

Presented below is an adjusted trial balance for Shawn Company at December 31 2016. $$\begin{array} { l r l r } \text { Cash } & \$ 7,700 & \text { Accounts payable } & \$ 10,000 \\\text { Accounts receivable } & 20,000 & \text { Notes payable } & 9,000 \\\text { Prepaid insurance } & 15,000 & \text { Accumulated depreciation- } & \\\text { Equipment } & 35,000 & \text { Equipment } & 14,000 \\\text { Depreciation expense } & 7,000 & \text { Service revenue } & 29,000 \\\text { Owner's Drawings } & 1,500 & \text { Owner's capital } & 24,000 \\\text { Advertising expense } & 1,400 & \text { Unearned service revenue } & 16,000 \\\text { Rent expense } & 800 & & \\\text { Salaries and wages expense } & 12,000 & & \\\text { Insurance expense } & 1,600 & \\& \underline { 102,000 }&& \underline { 102,000 } \end{array}$$ Instructions
(a) Prepare closing entries for December 31 2016.
(b) Determine the balance in the Owner's Capital account after the entries have been posted.

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Definitions:

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate commerce with foreign nations, among the several states, and with the Indian tribes.

Labor Relations

The study and practice of managing unionized employment situations, including negotiations between employers and labor unions.

Interstate Commerce

refers to any business or trade activities that cross state lines or affect more than one state in the United States, subject to federal regulation.

Federal Funds

Refers to the reserve balances that banks and other financial institutions maintain at Federal Reserve Banks, often lent and borrowed overnight between banks to meet reserve requirements.