Question

Instructions The unadjusted trial balance of Lakota Freight Co. at March 31, 2044, the end of the year, follows: Lakota Freight Co. UNADJUSTED TRIAL BALANCE March 31, 2014 ACCOUNT TITLE DEBIT CREDIT Cash 11,000.00 2 Supplies 31,000.00 Prepaid Insurance 4,800.00 Equipment 100,000.00 Accumulated Depreciation-Equipment 25,000.00 Trucks 60.000.00 Accumulated Depreciation-Trucks 15.000.00 Accounts Payable 6.000.00

Answer 1

Adjusting Entries Particulars Debit Credit Supplies Expense Supplies (Being Supplies expensed off) $ 23,500 $ 23,500 Insurance Expense Prepaid Insurance (Being expired insurance is expensed off) $ 2,400 $ 2,400 Depreciation Expense Accumulated Depreciation - Equip. (Being Depreciation is expensed off) $ 8,550 $ 8,550 Depreciation Expense Accumulated Depreciation - Truck (Being Depreciation is expensed off) 6,100 6,100 Wages Expense Wages Payable (Being wages accrued but not paid is accounted) $ 600 600

Lakota Freight Co. Adjusted Trial Balance Particulars Debit Credit Cash Supplies Prepaid Insurance Equipment Accumulated Depreciation Equipment Trucks Accumulated Depreciation - Trucks Accounts Payable Wages Payable Common Stock Retained Earnings Dividends Service Revenue Supplies Expense Depreciation Expense Insurance Expense Wage Expenses Rent Expense Truck Expense Miscellaneous Expense $ 11,000 $ $ $ 7,500 2,400 100,000 $ 33,550 $ 60,000 $ 21,100 $ $ $ 6,000 600 29,000 $ 45,200 $ 15,000 $ 170,000 23,500 $ 14,650 $ 2,400 $ 44,600 $ 10,600 $ 9,000 $ 4,800 305,450 $ $ Total 305,450

Preparation of Income Statement: Lakota Freight Co. Income Statement For the Year Ended March 31, 20Y4 $ Amount ($) $170,000 Particulars Service Revenue Total Revenue $ 170,000 Less: Operating Expenses Supplies Expense Depreciation Expense Insurance Expense Wage Expenses Rent Expense Truck Expense Miscellaneous Expense Total Operating Expenses Net Income 23,500 14,650 2,400 44,600 10,600 9,000 4,800 $ 109,550 $ 60,450

Preparation of the Statement of Stockholders' Equity: Lakota Freight Co. Statement of Stockholders' Equity For the Year Ended March 31, 20Y4 Retained Particulars Common Stock Earnings Opening Balance Add: Additions 29,000 $45,200 $ 29,000 105,650 $ $ $ $ 60,450 $ (15,000) Less: Dividends Ending Balance 29,000 90,650

Preparation of Balance Sheet Lakota Freight Co. Balance Sheet March 31, 20Y4 Amount ($) $ Particulars Current Assets: $ $ $ Cash 11,000 Supplies Prepaid Insurance Total Current Assets 7,500 2,400 $ 20,900 Property, Plant and Equiment $ $ Trucks 60,000 (21,100) $38,900 $ $ Accumulated Depreciation Trucks Equipment Accumulated Depreciation - Equipment 100,000 (33,550) 66,450 $ 126,250 Total Assets Liabilities: Current Liabilities Accounts Payable Wages Payable Total Current Liabilities $ $ 6,000 600 $ 6,600 Total Liabilities 6,600 Stockholders' Equity $ 29,000 $ 90,650 $ 119,650 Common Stock Retained Earnings Total Stockholders' Equity Total Liabilties and Stockholders' Equity $ 126,250

Lakota Freight Co. Post-Closing Trial Balance Particulars Debit Credit $ Cash 11,000 Supplies Prepaid Insurance Trucks Accumulated Depreciation - Trucks Equipment Accumulated Depreciation Equipment Accounts Payable Wages Payable Common Stock Retained Earnings 7,500 2,400 60,000 $ 21,100 $ 100,000 $ 33,550 $ 6,000 $ $ 29,000 $ 90,650 180,900 600 180,900 $ Total