Let's solve the requirements step by step. --- # **Step-by-Step Solution** ## **a) Prepare the Closing Entries** ### **1. Close Revenue Accounts** **Service Revenue:** $9,250 (credit balance) **Journal Entry:** ``` Service Revenue 9,250 Income Summary 9,250 ``` --- ### **2. Close Expense Accounts** **Expense Accounts (debit balances):** - Advertising expense: $1,400 - Amort. expense-equipment: $1,300 - Supplies expense: $500 - Insurance expense: $650 - Utilities expense: $2,900 **Total Expenses:** $1,400 + $1,300 + $500 + $650 + $2,900 = $6,750 **Journal Entry:** ``` Income Summary 6,750 Advertising expense 1,400 Amort. expense-equipment 1,300 Supplies expense 500 Insurance expense 650 Utilities expense 2,900 ``` --- ### **3. Close Income Summary to Capital** **Net Income = Revenues - Expenses = $9,250 - $6,750 = $2,500** (credit balance) **Journal Entry:** ``` Income Summary 2,500 Tom Cat, Capital 2,500 ``` --- ### **4. Close Withdrawals to Capital** - Tom Cat, Withdrawals: $4,900 (debit balance) **Journal Entry:** ``` Tom Cat, Capital 4,900 Tom Cat, Withdrawals 4,900 ``` --- ## **b) Prepare a Post-Closing Trial Balance** **Only permanent (balance sheet) accounts remain:** - Cash - Accounts receivable - Office supplies - Prepaid insurance - Equipment - Accum. amort.-equipment - Accounts payable - Salary payable - Unearned service revenue - Tom Cat, Capital (updated balance) **Calculate Updated Capital:** - Old Capital: $22,900 (credit) - Add Net Income: $2,500 (credit) - Subtract Withdrawals: $4,900 (debit) - **Ending Capital:** $22,900 + $2,500 - $4,900 = $20,500 (credit) --- ### **Post-Closing Trial Balance** | Account | Debit | Credit | |---------------------------|----------|----------| | Cash | 13,600 | | | Accounts receivable | 2,000 | | | Office supplies | 700 | | | Prepaid insurance | 1,200 | | | Equipment | 15,600 | | | Accum. amort.-equipment | | 3,900 | | Accounts payable | | 6,800 | | Salary payable | | 1,100 | | Unearned service revenue | | 800 | | Tom Cat, Capital | | 20,500 | | **Totals** | 33,100 | 33,100 | --- ## **Summary of Answers** ### **a) Closing Entries** 1. ``` Service Revenue 9,250 Income Summary 9,250 ``` 2. ``` Income Summary 6,750 Advertising expense 1,400 Amort. expense-equipment 1,300 Supplies expense 500 Insurance expense 650 Utilities expense 2,900 ``` 3. ``` Income Summary 2,500 Tom Cat, Capital 2,500 ``` 4. ``` Tom Cat, Capital 4,900 Tom Cat, Withdrawals 4,900 ``` ### **b) Post-Closing Trial Balance** | Account | Debit | Credit | |---------------------------|----------|----------| | Cash | 13,600 | | | Accounts receivable | 2,000 | | | Office supplies | 700 | | | Prepaid insurance | 1,200 | | | Equipment | 15,600 | | | Accum. amort.-equipment | | 3,900 | | Accounts payable | | 6,800 | | Salary payable | | 1,100 | | Unearned service revenue | | 800 | | Tom Cat, Capital | | 20,500 | | **Totals** | 33,100 | 33,100 | --- **If you need further explanation for any step, let me know!**

Here are the heading names from the post-closing trial balance table: 1. Account 2. Debit 3. Credit

The post-closing trial balance only includes three columns: **Account**, **Debit**, and **Credit**. There is no fourth column in the table.

In the post-closing trial balance, the amounts **$6,800** and **$20,500** fall under the **Credit** column. - **$6,800** is the amount for **Accounts Payable**. - **$20,500** is the updated balance for **Tom Cat, Capital** after closing entries.