Question

Green Valley Company prepared the following trial balance at the end of its first year of operations ending December 31. To simplify the case, the amounts given are in thousands of dollars.

	UNADJUSTED
Account Titles	Debit		Credit
Cash	14
Accounts receivable	11
Prepaid insurance	6
Machinery	73
Accumulated depreciation
Accounts payable			7
Wages payable
Income taxes payable
Common stock (5,000 shares)			5
Additional paid-in capital			53
Retained earnings	5
Revenues (not detailed)			65
Expenses (not detailed)	21
Totals	130		130

Other data not yet recorded at December 31 include

1. Insurance expired during the current year, $4.
2. Wages payable, $5.
3. Depreciation expense for the current year, $7.
4. Income tax expense, $8.

Required:

2. Using the adjusted balances, give the closing entry for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands.)

Answer 1

Credit Debit $ 65 General Journal Revenues Expenses Retained Earnings (To record closing entry) $ $ 45 20 Working Notes: $ GREEN VALLEY COMPANY Trial Balance December 31, Current Year Unadjusted Adjusted Account Titles Debit Credit Debit Credit Debit Credit Cash $ 14 $ 14 Accounts receivable $ 11 $ 11 Prepaid insurance $ 6 $ 4 $ 2 Machinery $ 73 $ 73 Accumulated depreciation $ 7 $ 7 Accounts payable $ 7 $ 7 Wages payable $ 5 $ 5 Income taxes payable $ 8 $ 8 Common stock (3,000 shares) $ 5 $ 5 Additional paid-in capital $ $ Retained earnings $ 5 $ 5 Revenues (not detailed) $ 65 $ 65 Expenses (not detailed) $ 21 $ 24 $ 45 Totals $ 130$ 130$ 24 $ 24 $ 150 $ 150 8 53 53 $ 5 NIN