EZ INC

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Use the information provided below to prepare closing entries on 12/31/2014 and then prepare the
post-closing trial balances as of 12/31/2014.
EZ Inc
Income Statement
For the year ended December 31, 2014
Revenues
Service revenue $19,000
Expenses
Supplies expense $500
Salaries expense 4,000
Rent expense 1,500
Total expenses $6,000
Net income 13,000
EZ Inc
Balance Sheet
As of December 31, 2014
Assets
Current Assets
Cash $2,000
Accounts receivable 1,300
Supplies 600
Prepaid insurance 500
Total current assets 4,400
Property, plant and equipment
Equipment $5,000
Less: Accumulated depreciation-Equipment 500 4,500
Total assets 8,900
Liabilities and Owner’s Equity
Liabilities
Notes payable $5,000
Accounts payable 700
Interest payable 100
Salaries payable 1,300
Total liabilities 7,100
Owner’s equity
Owner’s capital 1,800
Total liabilities and owner’s equity $8,900
AND
Closing entries
EZ Inc
Date Account Debit Credit Post-Closing Trial Balance
12/31/2014 December 31, 2014
12/31/2014
Account Title Debit Credit
Cash
Accounts receivable
Supplies
Prepaid insurance
Equipment
Accumulated depreciation
12/31/2014 Notes payable
Accounts payable
Interest payable
Salaries payable
Owner’s capital
Service revenue
Supplies expense
Salaries expense
Rent expense

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