Question

E4-16 through E4-18 Recording Four Adjusting Journal Entries and Preparing an Adjusted Trial Balance, 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 Be 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 $ 9 76 se 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. Req 2A Reg 2B Using T-accounts, determine the adjusted balances in each account. (Enter your answers in thousands of dollars.) Accounts Receivable Cash Beg Ball Beg Bal

Answer 1

Cash 38.00 Accounts Receivable 9.00 Common Stock 76.00 Retained Earnings 4.00 Beg.Bal Beg.Bal Beg.Bal Beg.Bal End. Bal 38.00 End. Bal 9.00 End. Bal 76.00 End. Bal 4.00 Insurance Expense Prepaid Insurance 6.00 5.00 Equipment 80.00 Sales Revenue 80.00 Beg.Bal Beg.Bal Beg.Bal Beg Bal Dec-31 Dec-31 5.00 End. Bal 1.00 End. Bal 80.00 End. Bal 80.00 End. Bal 5.00 Accumulated Depreciation Beg.Bal 4.00 Dec-31 Accounts Payable 9.00 Supplies Expense 26.00 Beg.Bal Salaries & Wages Expense Beg Bal 10.00 Dec-31 7.00 Beg.Bal End. Bal 4.00 End. Bal 9.00 End. Bal 17.00 End. Bal 26.00 Depreciation Income Tax Expense Income Tax Payable Beg.Bal Dec-31 Beg.Bal Dec-31 Salaries and Wages Expense Payable Beg.Bal 7.00 Dec-31 Beg.Bal 400 9.00 9.00 Dec-31 End. Bal 4.00 End. Bal 9.00 End. Bal 7.00 End. Bal 9.00

9 Mint Cleaning INC. Adjusted Trial Balance For Year Ended Dec 31 Account Titles Debit ($) Credit ($) Cash 38 Accounts Receivable 9 Prepaid Insurance 1 Equipment 80 Accumulated Depreciation 4 Accounts Payable 9 Salaries and Wages Expense Payable 7 Income Tax Payable Common Stock 76 Retained Earnings Sales Revenue 80 Depreciation Insurance Expense 5 Income Tax Expense 9 Salaries and Wages Expense 17 Supplies Expense 26 Total 189 189 9 4

Account Titles Insurance Expense Prepaid Insurance Debit ($) Credit ($) 5.00 5.00 4.00 Depreciation Accumulated Depreciation 4.00 7.00 Salaries & Wages Expense Salaries & Wages Expense payable 7.00 9.00 Income Tax Expense Income Tax Expense Payable 9.00