Based upon the data in Exercises 4-26 and 4-27, prepare the closing entries for Ithaca Services Co.Synthesis Systems Co. offers its services to residents in the Dillon City area. Selected accounts
from the ledger of Synthesis Systems Co. for the current fiscal year ended October 31, 2006, are
as follows:RETAINED EARNINGS
Oct. 31 12,000 Bal., Nov. 1, 2005 173,750
31 277,150 Oct. 31 321,400
Bal., Oct. 31, 2006 206,000DIVIDENDS
Jan. 31 3,000 Oct. 31 12,000
Apr. 30 3,000
July 31 3,000
Oct. 31 3,000Prepare a retained earnings statement for the year ending October 31, 2006.Selected accounts from the ledger of Bobcat Sports for the current fiscal year ended August 31,
2006, are as follows:RETAINED EARNINGS
Aug. 31 16,000 Bal., Sept. 1, 2005 210,300
31 224,900 Aug. 31 175,250
Bal., Aug. 31, 2006 144,650DIVIDENDS
Nov. 30 4,000 Aug. 31 16,000
Feb. 28 4,000
May 31 4,000
Aug. 31 4,000Prepare a retained earnings statement for the year.Rearrange the following steps of the accounting cycle in proper sequence.a. Adjusting entries recorded in the journal are posted to the ledger accounts.
b. Closing entries are prepared and recorded in the journal.
c. An unadjusted trial balance is prepared.
d. A post-closing trial balance is prepared.
e. Transactions are analyzed from source documents and are recorded in the journal using
the rules of debit and credit.
f. Adjustment data are assembled and analyzed.
g. Transactions recorded in the journal are posted to the ledger accounts.
h. Adjusting entries are prepared and recorded in the journal.
i. The financial statements are prepared.
j. Closing entries recorded in the journal are posted to the ledger accounts.
k. An adjusted trial balance is prepared.194 Chapter 4 Accounting Information Systems
Exercise 4-29
Closing entries
Goal 4Exercise 4-30
Statement of retained earnings
Goals3, 4Exercise 4-31
Statement of retained
earnings, net loss
Goals3, 4Exercise 4-32
Accounting cycle
Goal 5