The Adjusted Trial Balance of Tahoe Company at the End

question 85

Essay

The adjusted trial balance of Tahoe Company at the end of the accounting year, December 31, 2016, showed the following:
Account Titles
Adjusted Trial Balance
Debits
Credits
Cash
$20,000
Machinery
90,000
Accumulated depreciation
$16,000
Accounts payable
7,000
Capital stock
20,000
Retained earnings
59,000
Service revenue
40,000
Interest expense
4,000
Operating expenses
17,000
Depreciation expense
11,000
Total
$142,000
$142,000
Required:
A.Prepare all the required closing entries for Tahoe Company at December 31, 2016.
B.Calculate the 2016 ending balance in retained earnings.

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Definitions:

Jurisdiction

The official power to make legal decisions and judgments, usually referring to a geographic area or type of law.

Original Jurisdiction

The authority of a court to hear a case when it is first brought to court.

United States Supreme Court

The highest federal court in the United States, which has ultimate appellate jurisdiction over all federal and state court cases that involve a point of U.S. law.

Deposition

An oral question-and-answer session conducted under oath during which an attorney questions parties or witnesses from the opposition in a lawsuit.