Refer to the adjusted trial balance of Wilderness Guide Service Inc. illustrat

Refer to the adjusted trial balance of Wilderness Guide Service Inc. illustrated in Exercise 5.3 (3E) to respond to the following items.

a. Prepare all necessary closing entries at December 31 2007. Prepare an after closing trial balance dated December 31 3007. Compare retained earnings
balance reported in the after-closing trial balance prepared in part b to the balance reported in the adjusted trial balance. Explain why the two balances are
different. (Include in your explanation why the balance reported in the after-closing trial balance has increased or decreased subsequent to the closing
process.)

Wilderness Guide Service

Adjusted Trial Balance

December 31 2007

Cash 12200

Accounts Receivable 31000

Camping Supplies 7900

Unexpired insurance Policies 2400

Equipment 70000

Accumulated Depreciation: equipment 60000

Notes payable (due 4/1/09) 18000

Accounts Payable 9500

Capital Stock 25000

Retained earnings 15000

Dividends 1000

Guide Revenue earned 102000

Salary Expenses 87500

Camping Supply expense 1200

insurance Expense 9600

Depreciation expense: equipment 5000

Interest Expense 1700

229500 229500