Reference no: EM132217069

Question - At the beginning of 2016, Ellenville Motor Co. had the following normal balances in its accounts:

The following events apply to Ellenville Motor Co. for 2016:

Cash 60,000

Accounts receivable 38,000

Accounts payable 24,800

Common stock 48,000

Retained earnings 25,200

Provided $130,000 of services on account.

Purchased $750 of office supplies.

Incurred $6,200 of operating expenses on account.

Collected $112,000 of accounts receivable.

Paid $72,000 cash for salaries expense.

Paid $30,000 cash as a partial payment on accounts payable.

Paid a $16,000 cash dividend to the stockholders.

At the end of the year, an adjusting entry was prepared for the supplies that had been used. The amount of office supplies still on hand was $250.

Required -

Record these events in a general journal in journal entry format.

Open T-accounts and post the beginning balances and the preceding transactions to the appropriate accounts. Determine the balance of each account.

Record the closing entries in the general journal and post them to the T-accounts. What is the amount of net income for the year?

What is the amount of change in retained earnings for the year?

Prepare a post-closing trial balance.