Question

The unadjusted trial balance of Lakota Freight Co. at March 31, 2019, the end of the year, follows:

The data needed to determine year-end adjustments are as follows:
a. Supplies on hand at March 31 are $7,500.
b. Insurance premiums expired during the year are $1,800.
c. Depreciation of equipment during the year is $8,350.
d. Depreciation of trucks during the year is $6,200.
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 Balance column of a four-column account and place a checkmark (✓) in the Posting Reference 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 Lakota 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.

Answer 1

1)

Required Details

Cash
Date	Particulars	Ref:	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	11	12000		12000
`
Suppliers
Date	Particulars	Ref:	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	13	30000		30000
Prepaid Insurance
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	14	3600		3600
Equipment
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	16	110000		110000
Accumulated Depreciation - Equipment
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	17		25000	25000
Trucks
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	18	60000		60000
Accumulated Depreciation - Trucks
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	19		15000	15000
Accounts Payable
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	21		4000	4000
Kaya Tarango, Capital
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	31		96000	96000
Kaya Tarango Drawings
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	32	15000		15000
Service Revenue
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	41		160000	160000
Wages Expenses
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	51	45000		45000
Rent Expenses
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	53	10600		10600
Truck Expense
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	54	9000		9000
Miscellaneous Expenses
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	59	4800		4800

3)

Adjusting Journal Entries

Lakota Freight Company
Adjusting Journal Entries
Date	Particulars	Ref	Debit ($)	Credit ($)
A	Suppliers Expenses (30000-7500)	52	22500
	To Suppliers	13		22500
	(Being adjustment for suppliers account)
B	Insurance Expenses	57	1800
	To Prepaid Insurance	14		1800
	(Being adjusted expired insurance)
C	Depreciation Expenses - Equipment	55	8350
	To Accumulated Depreciation - Equipment	17		8350
	(Being adjustment made in depreciation of Equipment)
D	Depreciation Expenses - Trucks	56	6200
	To Accumulated Depreciation - Trucks	19		6200
	(Being adjustment made in depreciation of Trucks)
E	Wages Expenses	51	600
	To Wages Payable	22		600
	Being adjustment in Wages Payable

 

Adjusting Ledger

Cash
Date	Particulars	Ref:	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	11	12000		12000
`
Suppliers
Date	Particulars	Ref:	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	13	30000		30000
	Suppliers Expenses			22500	7500
Prepaid Insurance
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	14	3600		3600
	Insurance Expenses	14		1800	1800
Equipment
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	16	110000		110000
Accumulated Depreciation - Equipment
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	17		25000	25000
	Depreciation - Equipment	17		8350	33350
Trucks
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	18	60000		60000
Accumulated Depreciation - Trucks
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	19		15000	15000
	Depreciation - Trucks	17		6200	21200
Accounts Payable
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	21		4000	4000
Kaya Tarango, Capital
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	31		96000	96000
Kaya Tarango Drawings
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	32	15000		15000
Service Revenue
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	41		160000	160000
Wages Expenses
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	51	45000		45000
	Wages Payable	52	600		45600
Rent Expenses
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	53	10600		10600
Truck Expense
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	54	9000		9000
Miscellaneous Expenses
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Closing Balance	59	4800		4800
Suppliers Expenses
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Supply	52	22500		22500
Insurance Expenses
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Prepaid Insurance	57	1800		1800
Depreciation Expenses - Equipment
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Accumulated Depreciation - Eqp	55	8350		8350
Depreciation Expenses - Trucks
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Accumulated Depreciation - Eqp	55	6200		6200
Wages Payable
Date	Particulars	Ref	Debit ( $)	Credit ( $)	Balance  ( $)
	Wages expenses	22		600	600

 

4)

Adjusted Trial Balance

Adjusted Trial Balance
Particulars	Ref	Amount ($)	Amount ($)
Cash	11	12000
Suppliers	13	7500
Prepaid Insurance	14	1800
Equipment	16	110000
Accumulated Depreciation - Equipment	17		33350
Trucks	18	60000
Accumulated Depreciation - Trucks	19		21200
Accounts Payable	21		4000
Kaya Tarango Capital	31		96000
Kaya Tarango Drawings	32	15000
Service Revenue	41		160000
Wages Expenses	51	45600
Rent Expenses	53	10600
Truck Expenses	54	9000
Miscellaneous Expenses	59	4800
Suppliers Expenses	52	22500
Insurance Expenses	57	1800
Depreciation Expenses - Equipment	55	8350
Depreciation Expenses -  Trucks	56	6200
Wages Payable	22		600
Total		315150	315150