Instructions

Enter the trial balance on a worksheet and complete the worksheet.
E4-2 The adjusted trial balance columns of the worksheet for Goode Company are as follows.
GOODE COMPANY
Worksheet (partial)
For the Month Ended April 30, 2008
Adjusted Trial Income
Balance Statement Balance Sheet
Account Titles Dr. Cr. Dr. Cr. Dr. Cr.
Cash 13,752
Accounts Receivable 7,840
Prepaid Rent 2,280
Equipment 23,050
Accumulated Depreciation 4,921
Notes Payable 5,700
Accounts Payable 5,672
Common Stock 25,000
Retained Earnings 5,960
Dividends 3,650
Service Revenue 15,590
Salaries Expense 10,840
Rent Expense 760
Depreciation Expense 671
Interest Expense 57
Interest Payable 57
Totals 62,900 62,900
Instructions
Complete the worksheet.
E4-3 Worksheet data for Goode Company are presented in E4-2. No common stock was issued
during April.
Instructions
Prepare an income statement, a retained earnings statement, and a classified balance sheet.
E4-4 Worksheet data for Goode Company are presented in E4-2.
Instructions
(a) Journalize the closing entries at April 30.
(b) Post the closing entries to Income Summary and Retained Earnings. Use T accounts.
(c) Prepare a post-closing trial balance at April 30.

Enter the trial balance on a worksheet and complete the worksheet.

(a) To journalize the closing entries at April 30, we need to transfer the balances from the temporary accounts (income statement accounts and dividends) to the Retained Earnings account.

1. Transfer the balances of revenue accounts to the Income Summary account:
- Debit Service Revenue $15,590
- Credit Income Summary $15,590

2. Transfer the balances of expense accounts to the Income Summary account:
- Debit Salaries Expense $10,840
- Debit Rent Expense $760
- Debit Depreciation Expense $671
- Debit Interest Expense $57
- Credit Income Summary $12,328 (total of expenses)

3. Close the Income Summary account to Retained Earnings:
- Debit Income Summary $12,328
- Credit Retained Earnings $12,328

4. Close the Dividends account to Retained Earnings:
- Debit Retained Earnings $3,650
- Credit Dividends $3,650

(b) Now, let's post the closing entries to Income Summary and Retained Earnings accounts using T accounts:

1. Income Summary T account:
- Debit: $15,590 (from Service Revenue)
- Debit: $12,328 (from Expenses)
- Credit: $12,328 (to Retained Earnings)

2. Retained Earnings T account:
- Credit: $12,328 (from Income Summary)
- Debit: $3,650 (from Dividends)

(c) To prepare a post-closing trial balance at April 30, simply list the accounts and their balances after the closing entries have been made. Exclude the temporary accounts (income statement accounts and dividends).

GOODE COMPANY
Post-Closing Trial Balance
April 30, 2008

Account Titles Debit Credit
--------------------------------------------------
Cash $13,752
Accounts Receivable $7,840
Prepaid Rent $2,280
Equipment $23,050
Accumulated Depreciation $4,921
Notes Payable $5,700
Accounts Payable $5,672
Common Stock $25,000
Retained Earnings $5,940
Interest Payable $57
---------------
Totals $57,593 $57,593

To complete the worksheet, income statement, retained earnings statement, classified balance sheet, and the closing entries, you can follow the steps below:

Step 1: Completing the Worksheet (E4-2)
1. Transfer the adjusted trial balance amounts to the appropriate columns of the worksheet.
2. Calculate the totals for each column.
3. Determine the net income by subtracting the total of the Income Statement Credit column from the Income Statement Debit column.
4. Calculate the ending Retained Earnings by taking the beginning Retained Earnings, adding the net income, and subtracting the dividends.
5. Transfer the net income to the Retained Earnings column and the ending Retained Earnings to the Balance Sheet Debit column.
6. Complete the worksheet by calculating the totals for the Balance Sheet columns.

Step 2: Prepare an Income Statement, Retained Earnings Statement, and Classified Balance Sheet (E4-3)
1. The Income Statement summarizes the revenues and expenses for a specific period. List the account titles and their balances from the Income Statement columns of the completed worksheet, and calculate the total revenue and total expenses. Deduct the total expenses from the total revenue to find the net income.
2. The Retained Earnings Statement shows the change in retained earnings during a specific period. List the account titles and their balances from the Adjusted Trial Balance and the Retained Earnings columns of the completed worksheet. Include the net income, dividends, and the beginning and ending retained earnings.
3. The Classified Balance Sheet presents the assets, liabilities, and equity of the company at a specific point in time. List the account titles and their balances from the Balance Sheet columns of the completed worksheet. Classify the assets and liabilities into current and non-current categories.

Step 3: Journalize the Closing Entries, Post to Income Summary and Retained Earnings, and Prepare a Post-Closing Trial Balance (E4-4)
(a) To journalize the closing entries:
1. Close revenue accounts by debiting each revenue account and crediting the Income Summary account.
2. Close expense accounts by debiting the Income Summary account and crediting each expense account.
3. Close the Income Summary account by debiting Retained Earnings and crediting the Income Summary account.
4. Close the Dividends account by debiting the Retained Earnings account and crediting the Dividends account.
(b) To post the closing entries to the Income Summary and Retained Earnings accounts:
1. Transfer the amounts from the closing entries journal to the Income Summary and Retained Earnings accounts in the general ledger using T accounts.
2. Calculate the balance of the Income Summary and Retained Earnings accounts after posting.
(c) To prepare a post-closing trial balance:
1. List the account titles and their balances from the adjusted trial balance, Income Summary, and Retained Earnings accounts.
2. Calculate the totals for the debit and credit columns of the post-closing trial balance. The totals should match if the closing entries were recorded correctly.

By following these steps, you should be able to complete the worksheet, prepare the financial statements, and journalize the closing entries for Goode Company.