Question

E4-20 (Algo) Recording Four Adjusting Entries and Completing the Trial Balance Worksheet LO4-1

Green Valley Company prepared the following trial balance at the end of its first year of operations ending December 31. To simplify the case, the amounts given are in thousands of dollars.

	UNADJUSTED
Account Titles	Debit		Credit
Cash	25
Accounts receivable	22
Prepaid insurance	17
Machinery	84
Accumulated depreciation
Accounts payable			18
Wages payable
Income taxes payable
Common stock (3,000 shares)			3
Additional paid-in capital			64
Retained earnings	16
Revenues (not detailed)			111
Expenses (not detailed)	32
Totals	196		196

Other data not yet recorded at December 31 include

1. Insurance expired during the current year, $13.
2. Wages payable, $16.
3. Depreciation expense for the current year, $18.
4. Income tax expense, $10.

Required:

2. Complete the trial balance Adjustments and Adjusted columns. The “Ref.” column is for the reference letter of the adjusting entry effect.

Complete the trial balance Adjustments and Adjusted columns. The “Ref.” column is for the reference letter of the adjusting entry effect. (For revenues and expenses enter the total amount of adjustments in the adjusted column. Enter your answers in thousands.)

Answer 1

--Requirement, as asked

	Unadjusted		Unadjusted			Adjusted
	Debit	Credit	Ref	Debit	Credit	Debit	Credit
Cash	$25					$25
Accounts receivables	$22					$22
Prepaif Insurance	$17		a		$13	$4
Machinery	$84					$84
Accum Depr			c		$18		$18
Accounts payable		$18					$18
Wages payable			b		$16		$16
Income taxes payable			d		$10		$10
Common Stock		$3					$3
Additional paid in capital		$64					$64
Retained earnings	$16					$16
Revenues		$111					$111
Expenses	$32		[a] 13 + [b] 16 + [c] 18 + [d] 10	$57		$89
Total	$196	$196		$57	$57	$240	$240