Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 33

Preparing an Adjusted Trial Balance, Closing Journal Entry, and Post-Closing Trial Balance
Building on its brand's success in boardsports, Volcom, Inc , has become a premium designer, marketer, and distributor of clothing and accessories for young men and women. The following is a list of accounts and amounts reported for the fiscal year ended December 31, 2010. The accounts have normal debit or credit balances and the dollars are rounded to the nearest thousand.

Required:
1. Prepare an adjusted trial balance at December 31, 2010. Is the Retained Earnings balance of $99,911 the amount that would be reported on the balance sheet as of December 31, 2010
TIP: Volcom, Inc., did not declare a dividend during 2010 but it did earn net income.
2. Prepare the closing entry required at December 31, 2010.
3. Prepare a post-closing trial balance at December 31, 2010.