ACC – EZ Inc., Income Statement Questions

Use the information provided below to prepare closing entries on 12/31/2014 and then prepare the
post-closing trial balances as of 12/31/2014.

EZ Inc
Income Statement
For the year ended December 31, 2014
Revenues
Service revenue $19,000
Expenses
Supplies expense $500
Salaries expense 4,000
Rent expense 1,500

Total expenses $6,000
Net income 13,000

EZ Inc
Balance Sheet
As of December 31, 2014

Assets

Current Assets
Cash $2,000
Accounts receivable 1,300
Supplies 600
Prepaid insurance 500

Total current assets 4,400

Property, plant and equipment
Equipment $5,000
Less: Accumulated depreciation-Equipment 500 4,500

Total assets 8,900

Liabilities and Owner’s Equity

Liabilities
Notes payable $5,000
Accounts payable 700
Interest payable 100
Salaries payable 1,300
Total liabilities 7,100

Owner’s equity
Owner’s capital 1,800
Total liabilities and owner’s equity $8,900

AND
Closing entries
EZ Inc
Date Account Debit Credit Post-Closing Trial Balance
12/31/2014 December 31, 2014

12/31/2014

Account Title Debit Credit

Cash
Accounts receivable
Supplies
Prepaid insurance
Equipment
Accumulated depreciation
12/31/2014 Notes payable
Accounts payable
Interest payable
Salaries payable
Owner’s capital
Service revenue
Supplies expense
Salaries expense
Rent expense