Question

Chapter 4 Completing the Account Cole 5. Net income: PR 4-4A Ledger accounts, adjusting entries financial statements and closing entries; optional spreadsheet The unadjusted trial balance of Lakota Freight Goat March 31, 2018, the $51,150 Obj. 2,3 EE he end of the year, follows SENEGAL LEDSER Unada Freight Unadjusted Trial Balance March 31. 2018 Account Cash- Debit Balances 12.000 30,000 3,600 110,000 25,000 60,000 Supplies .. Prepaid Insurance... Equipment Accumulated Depreciation Equipment Trucks.. Accumulated Depreciation-Trucks Accounts Payable Common Stock ... Retained Earnings ...... Dividends..... Service Revenue.... Wages Expense....... Rent Expense............. Truck Expense......... Miscellaneous Expense... 15.000 4,000 26.000 70.000 15,000 160.000 45.000 10,600 9.000 4,800 The data needed to determine year-end adjustments are as follows: 300.000 300,000 (A) Supplies on hand at March 31 are $7.500. (B) Insurance premiums expired during year are $1,800. (C) Depreciation of equipment during year is $8,350 (D) Depreciation of trucks during year is 56,200. (E) Wages accrued but not paid at March 31 are $600 Instructions 1. For each account listed in the trial balance, enter the balance in the appropriate column of a four-column account and place a check mark in the Posting Rerere column 2. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Add the accounts listed in part (3) as needed. 3. Journalize and post the adjusting entries, inserting balances in the accounts affected. Record the adjusting entries on Page 26 of the journal. The following additional accounts from la kota Freight Co.'s chart of accounts should be used: Wages Payable, 22; Supplies Expense, 52; Depreciation Expense-Equipment, 55; Depreciation Expense-Trucks, 56; Insurance Expense, 57. 4. Prepare an adjusted trial balance. 5. Prepare an income statement, a retained earnings statement, and a balance sheet. 6. Journalize and post the closing entries. Record the closing entries on Page 27 of the journal. (Income Summary is account #34 in the chart of accounts.) Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. 7. Prepare a post-closing trial balance.

Answer 1

Lakota Freight Co. Adjusting Enteries Trans. Particulars 1 Supplies Expense a/c Dr. To Supplies (Supplies expensed) 30000 - 7500 Debit in $ Credit in $ 22500 22500 2 Dr. 1800 Insurance Expense a/c To Prepaid Insurance (Insurance expensed) 1800 8350 Depreciation Expense a/c Dr. To Accumulated Depreciation - Equip. (To record depreciation) 8350 4 6200 Depreciation Expense a/c Dr. To Accumulated Depreciation - Trucks (To record depreciation) 6200 5 Dr. 600 Wages Expense a/c To Wages Payable (Wages accrued) 600 Closing Enteries Date Particulars 31.3.2018 Income Summary a/c Dr. To Wages Expense To Rent Expense To Truck Expense To Supplies Expense To Insurance Expense To Miscellaneous Expense To Depreciation Expense (Expense accounts closed) Debit in $ Credit in $ 108850 45600 10600 9000 22500 1800 4800 14550 Dr. 160000 31.3.2018 Service Revenue a/c To Income Summary (Revenue accounts closed) 160000 Dr. 51150 31.3.2018 Income Summary a/c To Retained Earnings (Profits transferred) 51150 Dr. 15000 31.3.2018 Retained Earnings a/c To Dividends (Dividends charged) 15000

Trial Balance For the period ending 31.3.2018 Particulars Cash Supplies Prepaid Insurance Equipment Accumulated Depreciation - Equip. Trucks Accumulated Depreciation - Trucks Accounts Payable Wages Payable Common Stock Retained Earnings Dividends Service Revenue Wages Expense Rent Expense Truck Expense Supplies Expense Insurance Expense Miscellaneous Expense Depreciation Expense Totals Adjusted Post Closing Debit in $ Credit in $ Debit in $ Credit in $ 12000 12000 7500 7500 1800 1800 110000 110000 33350 33350 60000 60000 21200 21200 4000 4000 600 600 26000 26000 70000 106150 15000 160000 45600 10600 9000 22500 1800 4800 14550 315150 315150191300 191300

160000 Statement of Income For the period ending 31.3.2018 Service Revenue Less: Wages Expense 45600 Rent Expense 10600 Truck Expense 9000 Supplies Expense 22500 Insurance Expense 1800 Miscellaneous Expense 4800 Depreciation Expense 14550 Net Income 108850 51150 Statement of Retained Earnings For the period ending 31.3.2018 Beginning 70000 Net Income 51150 121150 Less:Dividends - 15000 106150

Amounts in $ Amounts in $ Balance sheet As at 31.3.2018 Assets Current Assets Cash Supplies Prepaid Insurance Amounts in $ Amounts in $ Liabilities Current Liabilities 12000 Accounts Payable 7500 Wages Payable 1800 21300 4000 600 4600 Non Current Assets Equipment Accumulated Depreciation -Equip. Trucks Accumulated Depreciation - Trucks Total Assets 110000 -33350 60000 -21200 76650 Shareholders Equity Common Stock 38800 Retained Earnings 136750 Total Liabilities & Equity 26000 106150 132150 136750