Chong, Inc. provides advice to art enthusiast interested in purchasing art at Sotheby's annual art auctions. Â On December 31, 2012, Chong's account balances are shown below in the Adjusted Trial Balance. Â No dividends were declared in 2012.
| Chong, Inc. Adjusted Trial Balance December 31, 2012 | ||
|---|---|---|
| Â | Â | Â |
| Cash | Â Â Â Â 241,000 | Â |
| Accounts receivable | 274,815 | Â |
| Supplies | 1,065 | Â |
| Accounts payable | Â | 1,570 |
| Common stock | Â | 120,000 |
| Retained earnings | Â | 177,000 |
| Service revenue | Â | 365,670 |
| Advertising expense | 2,160 | Â |
| Insurance expense | 800 | Â |
| Rent expense | 5,400 | Â |
| Salary expense | 139,000 | Â |
| Â | 664,240 | 664,240 |
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a) Prepare closing entries.
| Date | Description | Debit | Credit |
|---|---|---|---|
b) Prepare a post-closing Trial Balance
| Accounts | Debits | Credits |
|---|---|---|
| Total | Single lineDouble line | Single lineDouble line |