Key Accounting Principles Volume 1, 4th Edition - Textbook - page 149

Chapter 6 The Accounting Cycle: Statements and Closing Entries
149
Account: Insurance Expense GL. No. 515
Date Description PR DR CR Balance
2016
Jan 31 Adjustment J2 100 100 DR
Jan 31 Closing Entry J3 100 0 DR
Account: Interest Expense GL. No. 520
Date Description PR DR CR Balance
2016
Jan 31 Adjustment J2 25 25 DR
Jan 31 Closing Entry J3 25 0 DR
Account: Rent Expense GL. No. 540
Date Description PR DR CR Balance
2016
Jan 3 J1 800 800 DR
Jan 31 Closing Entry J3 800 0 DR
Account: Telephone Expense GL. No. 550
Date Description PR DR CR Balance
2016
Jan 20 J1 250 250 DR
Jan 31 Closing Entry J3 250 0 DR
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Figure 6.19
Post-Closing Trial Balance
Once the closing entries are completed, it is necessary to ensure that the balance sheet still balances.
This is done by completing another trial balance called the post-closing trial balance. The post-
closing trial balance only lists accounts that have a balance. Since the closing entries have been
journalized and posted, only assets, liabilities and owner’s capital should have a balance.The post-
closing trial balance is shown in Figure 6.20.