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:

Owner's Equity Statement

An owner's equity statement is a financial document that shows changes in the equity of a company's owners over a period.

Owner's Capital

The amount of equity a business owner has in the company, representing their investment plus any retained earnings or losses.

Accounts Payable

Liabilities or amounts owed by a company to its creditors/vendors for goods and services received but not yet paid for.

Buildings

Structures such as houses, offices, and factories that are constructed as fixed assets for use in operations or investment.