Preparing Closing Entries and Trial Balance

In this worksheet, students will assist Alex’s Auto Detailing business in completing the final steps of the accounting cycle. Alex has already prepared the trial balance and financial statements, and now it’s time to perform the necessary closing entries and prepare the post-closing trial balance.

What Students Will Do:

• Review the trial balance provided for Alex’s business.
• Create the closing entries to clear out temporary accounts, such as revenues and expenses.
• Update the ledger, particularly the Owner’s Equity account, to reflect the closing entries.
• Prepare the post-closing trial balance, ensuring that only permanent accounts (assets, liabilities, and equity) remain.

Key Features:

• Randomized Data: Each student will work with a unique set of transaction amounts, ensuring independent work and preventing copying.
• Auto-Grading: The worksheet is automatically graded, providing instant feedback on the accuracy of the closing entries and post-closing trial balance.

This worksheet provides hands-on experience with the final stages of the accounting cycle, helping students understand how to close temporary accounts and prepare financial records for the next period. Through randomized data and auto-grading, students receive personalized feedback to solidify their understanding of these critical accounting tasks.