Presented Below Are the Year-End Balances at December 31 of Becca's

question 185

Essay

Presented below are the year-end balances at December 31 of Becca's Dry Cleaning Service, Inc. (All accounts have normal balances.) (a) Prepare the necessary closing entries at December 31.
(b) Prepare a post-closing trial balance at December 31.

---

Definitions:

Justifiable Expectations

Legitimate anticipations or assumptions made by a party in a contract, protected by law.

Revocation of Authority

The act of canceling or withdrawing the power or rights previously granted to an agent or representative.

Negligent Hiring

A legal claim made against an employer for hiring an individual they either knew or should have known was likely to pose a risk of harm to others, based on their background or qualifications.

Legally Insolvent

The condition of being unable to pay debts as they fall due or having liabilities that exceed the value of assets.