FINANCIAL ACCOUNTING AND REPORTING

LEARNING MODULES

Lesson 12 POST-CLOSING TRIAL BALANCE

Did you know that?

LEARNING OBJECTIVE The inventor of the calculator is Blaise Pascal. The
1. Prepare a post-closing trial balance. training of accountancy students includes the use of a
calculator in solving simple and complex problems.

The post-closing trial balance lists permanent

accounts and their balances after the journalizing and posting of closing entries. This is done by cross-footing the
amounts in the closing entries columns and the balance sheet columns. It is assumed that all the accounts in the
income statement columns are zero-out or closed already. All the real accounts are forwarded to the next
accounting period.

Let us make use of the worksheet below in which the post-closing trial balance columns are created for a better
illustration of how post-closing trial balance using worksheet is done. Just copy the balances of the balance sheet
accounts to the post-closing trial balance columns except for the capital account in which you need to horizontally
add or subtract the entries in the closing entries columns first before putting the resulting amount to the
appropriate column in the post-closing trial balance.

MSS REPAIR SERVICES

Worksheet
December 31, 2019

Income Statement Balance Sheet Closing Entries Post-closing Trial Balance

Account Titles
Dr Cr Dr Cr Dr Cr Dr Cr
Cash 60,000 60,000
Accounts Receivables 18,000 18,000
Supplies 7,000 7,000
Prepaid Insurance 14,000 14,000
Land 480,000 480,000
Buildings 700,000 700,000
Accumulated Depreciation-Buildings 204,000 204,000
Equipment 500,000 500,000
Accumulated Depreciation-Equipment 190,000 190,000
Accounts Payable 20,000 20,000
Unearned Service Revenue 11,000 11,000
Mortgage Payable 400,000 400,000
MSS, Capital 715,000 236,000 951,000
Service Revenue 351,000 351,000
Salary Expense 87,000 87,000
Telephone Expense 3,000 3,000
Utility Expense 2,000 2,000
Miscellaneous Expense 1,000 1,000
Supplies Expense 2,000 2,000
Insurance Expense 5,000 5,000
Depreciation Expense-Building 4,000 4,000
Depreciation Expense-Equipment 10,000 10,000
Salaries Payable 2,000 2,000
Interest Expense 1,000 1,000
Interest Payable 1,000 1,000
Income Summary 236,000 236,000
115,000 351,000 1,779,000 1,543,000
Net Income 236,000 236,000
351,000 351,000 1,779,000 1,779,000 587,000 587,000 1,779,000 1,779,000

Suggested Exercises

1. Problems 1-4, Financial Accounting & Reporting (Fundamentals) 2nd Edition (2019) by Millan, pp.
316-319.

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 FINANCIAL ACCOUNTING AND REPORTING
LEARNING MODULES

2. Exercises E4.7 & E4.8, Accounting Principles 13th Edition (2018) by Weygandt, Kimmel & Kieso, pp.
4-44 & 4-45.

References

1. Ballada, W. & Ballada, S. (2019). Basic Financial Accounting and Reporting 22nd Edition. Manila,
Philippines: DomDane Publishers.
2. Millan, Z. V. (2019). Financial Accounting & Reporting (Fundamentals) 2nd Edition. Baguio City,
Philippines: Bandolin Enterprise.
3. Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2018). Accounting Principles 13th Edition. Asia: John
Wiley & Sons (Asia) Pte Ltd.