Question

E4-16 through E4-18 Recording Four Adjusting Journal Entries and Preparing an Adjusted Trial Balanc Reporting an Income Statement, Statement of Retained Earnings, and Balance Sheet and Recording Closing Entries [LO 4-2, LO 4-3, LO 4-4 and LO 4-5) (The following information applies to the questions displayed below.) Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. (Assume amounts are reported in thousands of dollars.) Credit Debit $ 38 9 6 80 Account Titles Cash Accounts Receivable Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Sales Revenue Insurance Expense Salaries and Wages Expense Supplies Expense Totals $ 0 9 76 4 80 10 26 $169 $169 Other data not yet recorded at December 31 a Insurance expired during the year, $5. b. Depreciation expense for the year, $4. c. Salaries and wages payable, $7. d. Income tax expense, $9. E4-16 Part 2 2-a. Using T-accounts, determine the adjusted balances in each account. 2-b. Prepare an adjusted trial balance as of December 31. Complete this question by entering your answers in the tabs below. Reg 2 Reg 28 Using T-accounts, determine the adjusted balances in each account. (Enter your answers in thousands of dollars.) Cash Accounts Receivable Beg Bal Beg Bal

Answer 1

1) Adjusting Journal Entry:

Particulars   Debit($)   Credit($)

(a) Insureance ac.....Debit 5

To Prepaid Insureance 5

(Being Prepaid insureance expired)

(b) Depriciation account......Debit 4

To Accumulated Depriciation 4

(Being Depriciation Charged on assets)

(c) Salaries and Wages account..Debit    7

To Salaries and Wages Payble account 7

(Being Salaries and Wages outstanding)    

(d) Income Tax...............Debit 9

To Income Tax Payble 9

(Being Provision for Income Tax made)

E4-16 Part 2(a)

Cash	Amount
Unadjusted balance	38
Add/Less: no transaction	Nil
Adjusted balance	38

Accounts Receivable	Amount
Unadjusted Balance	9
Add/Less: no transaction	Nil
Adjusted balance	9

Prepaid Insureance	Amount
Unadjusted Balance	6
Less: expired	5
Adjusted Balance	1

Equipment	Amount
Unadjusted Balance	80
Add/Less : no Ttransaction	Nil
Adsjusted Balance	80

Acumulated Depricition	Amount
unadjuted balance	0
Add: provision made	4
Adjusted balance	4

Accounts Payble	Amount
Unadjusted Balance	9
Add/Less: no transaction	0
Adjusted balance	9

Common Stock	Amount
Unadjusted Balance	76
Add/less: no transaction	Nil
Adjusted Balance	76

Retained Earnings	Amount
Unadjusted Balance	4
Add/less : no transaction	nil
Adjusted Balance	4

Sales	Amount
Unadjusted Balance	80
Add/Less: No Transaction	Nil
Adjuted Balance	80

Insureance	Amount
Unadjusted Balance	0
Add: Expired INsureance	5
Adjusted Balance	5

Salaries and Wages	Amount
Unadjusted balance	10
Add: Outstanding	7
Adjusted Balance	17

Supplies	Amount
Unadjusted Balance	26
Add/Less: No Transaction	Nil
Adjusted Balance	26

Depriciation	Amount
Unadjusted Balance	0
Add:Provision	4
Adjusted Balance	4

Salaries and Wages Payble	Amount
Unadjusted balance	0
Add: Payble	7
Adjusted Balance	7

Income tax Payble	Amount
Unadjusted balance	0
Add: proviosion	9
Adjusted balance	9

Income Tax	Amount
Unadjusted Balance	0
Add/Less: Provision made	9
Adjusted Balance	9

E4-16 Part 2(b)

Adjusted Trial Balance

Particulars	Debit	Credit
Cash	38
Accounts Receivable	9
Prepaid Insureance	1
Equipment	80
Accumulated Depreciation		4
Accounts Payble		9
Common Stock		76
Retained Earnings		4
Sales		80
Insureane	5
Salaries	17
Supplies	26
Depriciation	4
Salaries payble		7
Income tax Payble		9

Income Tax 9

Total 189 189