Question:

How many temporary accounts does Eagles Corp need to close? Answer numerically or spell the number (e.g., 1 or one).

What is the balance of retained earnings for Eagles Corp after closing entries are made for 2016? Do not use decimals or dollar signs.

What is the effect of Eagles Corp’s 2016 closing entries on the basic accounting equation?

Please refer to the adjusted trial balance for Cougar Corp provided in the information sheet for problems 4-5.

4. What is income from continuing operations for 2016? Do not use decimals or dollar signs

5.For Cougar Corp in 2016, Net Income is ________ lower than Income from Continuing Operations.

Do not use decimals, dollar signs, or negative signs.

TRIAL BALANCE FOR PROBLEMS 1-3
Presented below is an alphabetical list of 2016 pre-closing account balances of Eagles Corp, a
merchandising company. Assume all accounts have normal balances.
Accounts
Accounts Payable
Accounts Receivable
Accumulated Depreciation – Buildings
Administrative and General Expenses
Buildings
Cash
Common Stock
Depreciation Expense – Buildings
Dividends (Common Stock)
Interest Expense
Land
Prepaid Rent
Retained Earnings, Beginning Balance for 2016
Sales Revenue
Selling Expenses
Unearned Revenue Balance
2,000
4,500
7,000
4,625
36,500
10,000
12,500
1,750
2,000
500
20,000
1,000
16,500
126,500
45,500
2,125 TRIAL BALANCE FOR PROBLEMS 4-5
Presented below is the final adjusted trial balance of the 2016 year-end account balances of
Cougar Corp, a merchandising company.
Other relevant information:
1. Cougar Corp disposed of their Widget Division during 2016.
2. Assume a tax rate of 35% for all income statement items.
Cougar Corp
Adjusted Trial Balance – December 2016
Accounts
Accounts Payable
Accounts Receivable
Accumulated Depreciation
Administrative Expenses
Buildings
Cash
Common Stock
Cost of Goods Sold
Dividends
Land
Loss from disposal of Widget Division
Retained Earnings, Beginning balance for 2016
Rent Revenue
Sales Revenue (merchandise sales)
Selling Expenses
Supplies
Unearned Revenue
Total Debit Credit
40,000 80,000
20,000
46,000
259,000
47,000
136,000
400,000
1,000
40,000
22,000
86,000
6,000
678,000
72,000
3,000
970,000 4,000
970,000