The Year-End Adjusted Trial Balance of ABC Supply for the Current

question 65

Essay

The year-end adjusted trial balance of ABC Supply for the current year is shown below:
$\begin{array}{c} \text {ABC SUPPLY}\\ \text {Adjusted Trial Balance}\\ \text {December 31}\\\begin{array}{|l|r|r|}\hline \text { Cash } & \$ 1,500 & \\\hline \text { Office supplies } & 500 & \\\hline \text { Merchandise inventory } & 11,000 & \\\hline \text { Store equipment } & 18,000 &\\\hline \text { Accum Depr - store equipment } & & \$ 3,000 \\\hline \text { Accounts payable } & & 6,000 \\\hline \text { Common stock } & & 10,000 \\\hline \text { Retained earnings } & & 40,000\\\hline \text { Dividends } & 22,000 & \\\hline \text { Sales } & & 60,500 \\\hline \text { Cost of goods sold } & 48,000 & \\\hline \text { Depreciation expense - Store equipment } & 1,000 &\\\hline \text { Office supplies expense } & 1,500 & \\\hline \text { Salaries expense } & 14,000 & \\\hline \text { Rent expense } & 2,000 & \\\hline & \$ 119,500 & \$ 119,500 \\\hline\end{array}\end{array}$
Prepare closing entries at December 31 for the current year.

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Definitions:

Andrew Huxley

A British physiologist and biophysicist awarded the Nobel Prize for his work on the nerve impulse and muscle contraction.

Nobel Prize

Prestigious international awards given annually in several categories including Physics, Chemistry, Medicine, Literature, and Peace, recognizing significant achievements.

Motor Neurons

Motor neurons are nerve cells responsible for conveying signals from the brain and spinal cord to muscles, instructing them to contract and thus enabling movement.

Nerve Impulses

The electrical signals that pass along the nerve fibers, facilitating communication between neurons or between neurons and muscles.