Exercise 4-8 (part level submission) plevin company ended its fiscal year on july 31, 2017. the company’s adjusted trial balance as of the end of its fiscal year is shown below. plevin company adjusted trial balance july 31, 2017 no. account titles debit credit 101 cash $10,050 112 accounts receivable 9,500 157 equipment 15,600 158 accumulated depreciation—equip. $7,500 201 accounts payable 4,800 208 unearned rent revenue 1,800 311 common stock 17,450 320 retained earnings 27,000 332 dividends 15,500 400 service revenue 65,000 429 rent revenue 6,000 711 depreciation expense 7,000 726 salaries and wages expense 56,400 732 utilities expense 15,500 $129,550 $129,550 (a) prepare the closing entries. (credit account titles are automatically indented when amount is entered. do not indent manually.)

The Net loss Position is -$7,900. The distributable retained earnings (post dividend payment and loss recognition) is $3,600 and the Net Asset Position of Plevin Company is $21,050

Explanation:

The response below looks all muddied up, but i have attached an excel file to help you understand how i arrived at the conclusions above.

Plevin Company      

Income Statemenet for the Year Ended July 31, 2017      

Revenue:      

Service Revenue  65,000  

Rent Revenue  6,000  

Net Income    71,000  

Less Expenses:      

Salaries & Wages    56,400  

Utilities  15,500  

Depreciation  7,000  

Net Expenses    78,900  

Net Loss    -7,900  

schedule of distributable Profit      

Opening Balance of Retained Earnings    27,000  

Add Net Loss for the year    -7,900  

Less Dividend Payment    15,500  

Closing balance of Retained Earnings    3,600  

Plevin Company    

Balance Sheet as at July 31, 2017    

Fixed Assets:    

Equipment    15,600

less Accumulated Depreciation    -7,500

Net Book Value    8,100

Current Assets    

Cash  10,050  

Account receivable  9,500  

 19,550  

Current Liabilities    

Accounts Payable  4,800  

Unearned rent revenue  1,800  

 6,600  

Working Capital (Current Asset less Current Liability)    12,950

Net Assets    21,050

Shareholders Fund:    

Common Stock    17,450

Add Retained Earnings    3,600

Net Shareholders Fund    21,050