Question

This is all one question

Chapter 4 The following is an unadjusted trial balance (before any adjustments have been made) for Garcia, Inc. at December 31 of the current year: Debit Credit 42,000 11,600 900 800 19,000 9,200 8,300 Account Titles Cash Accounts Receivable Supplies Prepaid Insurance Service Vehicles Accumulated Depreciation Other Assets Accounts Payable Wages Payable Income Taxes Payable Note Payable (3 years) Common Stock (5,000 shares outstanding) Additional Paid-in-Capital Retained Earnings Service Revenue Remaining Expenses Income Tax Expense Totals 3,000 17,000 400 19,000 6,000 61,360 33,360 115,960 115,960 Additional information not yet recorded: a) The supplies count at year-end reflected $300 remaining supplies on hand (unused). b) Insurance expired during the year: $800. c) Depreciation expense for the year: $3,700. d) Wages earned by employees not yet paid at year-end: $640. e) Income tax expense incurred but unpaid at year-end: $5,540. Required 1. Record the adjusting entries listed above, post to general ledger accounts, and prepare an adjusted trial balance. 2. Compare your balances with those on the given income statement, retained earnings statement, and balance sheet for December 31. 3. Record closing entries for the year, post to general ledger accounts, and prepare a post-closing trial balance.

these are the spreed sheets to help with the problem

Answer 1

Adjustment Entries
Account	Debit	Credit
Supplies Expense     Dr	600
Supplies		600
Insurance Expense    Dr	800
Prepaid Insurance		800
Depreciation Exp     Dr	3700
Accumulated Depreciation		3700
Wages Expense    Dr	640
Wages Payable		640
Income Tax Expense    Dr	5540
Income Tax payable		5540

	Cash
Date	Description	Debit	Credit	Balance
	Unadjusted Bal	42000

	Accounts Receivable
Date	Description	Debit	Credit	Balance
	Unadjusted Bal	11600

	Prepaid Insurance
Date	Description	Debit	Credit	Balance
	Unadjusted Bal	800
	Insurance expense		800	0

	Service vehicles
Date	Description	Debit	Credit	Balance
		19000

	Accumulated Depreciation
Date	Description	Debit	Credit	Balance
	Unadjusted Bal		9200
	Depreciation		3700	12900

	Supplies
Date	Description	Debit	Credit	Balance
	Unadjusted Bal	900
	Supplies Expense		600	300

	Other Assets
Date	Description	Debit	Credit	Balance
	Unadjusted Bal	8300		8300

	Service Revenue
Date	Description	Debit	Credit	Balance
	Unadjusted Bal		61360	61360

	Remaining Expense
Date	Description	Debit	Credit	Balance
	Unadjusted Bal	33360		33360

	Supplies Expense
Date	Description	Debit	Credit	Balance
	Supplies	600		600

	Depreciation Expense
Date	Description	Debit	Credit	Balance
	Accumulated Dep	3700		3700

	Insurance Expense
Date	Description	Debit	Credit	Balance
	Prepaid Insurance	800		800

	Wages Expense
Date	Description	Debit	Credit	Balance
	Wages Payable	640		640

	Income Tax expense
Date	Description	Debit	Credit	Balance
	Income tax payable	5540		5540

	Retained earnings
Date	Description	Debit	Credit	Balance
	Unadjusted Bal		6000	6000

	Additional Paid-in-capital
Date	Description	Debit	Credit	Balance
	Unadjusted Bal		19000	19000

	Common Stock ( 5000 shares outstanding
Date	Description	Debit	Credit	Balance
	Unadjusted Bal		400	400

	Note Payable ( 3 years)
Date	Description	Debit	Credit	Balance
	Unadjusted Bal		17000	17000

	Income Tax payable
Date	Description	Debit	Credit	Balance
	Income Tax expense		5540	5540

	Wages Payable
Date	Description	Debit	Credit	Balance
	Wages		640	640

Accounts Payable
Date	Description	Debit	Credit	Balance
	Unadjusted Bal		3000	3000

Adjusted Trial Balance
Cash	42000
Accounts Receivable	11600
Supplies	300
Service vehicles	19000
Accumulated Depreciation		12900
Other Assets	8300
Accounts Payable		3000
Income Tax payable		5540
Wagges Payable		640
Note Payable		17000
Common Stock		400
Additional Capital		19000
Rtained Earnings		6000
Service Revenue		61360
Remaining Expense	33360
Income Tax Expense	5540
Supplies Expense	600
Depreciation Expense	3700
Wages Expense	640
Insurance Expense	800
	125840	125840

Income Statement
Income
Service Revenue		61360
Expense
Remaining Expense	33360
Income Tax Expense	5540
Supplies Expense	600
Depreciation Expense	3700
Wages Expense	640
Insurance Expense	800
	44640
NET INCOME		16720

Retained Earnings
Beg Bal		6000
Net Income		16720
Closing Bal		22720

BALANCE SHEET
ASSETS
Current Assets
Cash	42000
Accounts Receivable	11600
Supplies	300
	53900
PPE
other Assets	8300
Service vehicle	19000
Less Accumulated Dep	-12900
	14400
Total Assets	68300
LIABLITIES
Current Liabilities
Accounts Payable	3000
Income Tax payable	5540
Wages Payable	640
	9180
Long Term Liabilities
Note Payable	17000
	17000
Stock holder's Equity
Common Stock	400
Additional Capital	19000
Rtained Earnings	22720
Total Stock holder'sEquity	42120
Total Liabity and Stock holder's Equity	68300

Post Closing Trial Balance
Account	Debit	Credit
Cash	42000
Accounts Receivable	11600
Supplies	300
Service vehicles	19000
Other Assets	8300
Accumulated Depreciation		12900
Accounts Payable		3000
Income Tax payable		5540
Wagges Payable		640
Note Payable		17000
Common Stock		400
Additional Capital		19000
Rtained Earnings		22720
TOTAL	81200	81200