The Adjusted Trial Balance of Tahoe Company at the End $\quad$

question 119

Essay

The adjusted trial balance of Tahoe Company at the end of the accounting year,December 31,2010,showed the following:
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Adjusted Trial Balance
Account Titles $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Debits $\quad$$\quad$$\quad$$\quad$ Credits
Cash $\quad$$\quad$$\quad$ $\quad$$\quad$$\quad$$\quad$ $\quad$$\quad$ $ 20,000
Machinery $\quad$ $\quad$$\quad$$\quad$$\quad$ $\quad$$\quad$ 90,000
Accumulated depreciation $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $ 16,000
Accounts payable $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 7,000
Capital stock $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 20,000
Retained earnings $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 59,000
Service revenue $\quad$$\quad$$\quad$$\quad$ $\quad$$\quad$$\quad$$\quad$ $\quad$$\quad$$\quad$$\quad$ 40,000
Interest expense $\quad$$\quad$$\quad$$\quad$ $\quad$ 4,000
Operating expenses $\quad$$\quad$$\quad$$\quad$ 17,000
Depreciation expense $\quad$$\quad$$\quad$ 11,000
Totals $\quad$$\quad$$\quad$$\quad$ $\quad$$\quad$$\quad$$\quad$ $142,000 $\quad$$\quad$$\quad$$\quad$ $ 142,000

Requirements:
A.Prepare all the required closing entries for Tahoe Company at December 31,2010.
B.Calculate the 2010 ending balance in retained earnings.

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Definitions:

Financing Statement

A document filed by a secured creditor to give public notice of their security interest in a debtor's personal property.

Note

A brief record of facts, topics, or thoughts written down as an aid to memory.

Perfected Security Interest

A legal claim or lien that has been formally established or registered, providing a creditor priority over other claimants in case of debtor default.

Bankruptcy

A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code).