Problem

Recording Four Adjusting Entries and Completing the Trial Balance WorksheetRed River Compa...

Recording Four Adjusting Entries and Completing the Trial Balance Worksheet

Red River Company prepared the following trial balance at the end of its first year of operations ending December 31, 2011. To simplify the case, the amounts given are in thousands of dollars.

 

UNADJUSTED

ADJUSTMENTS

ADJUSTED

Account Titles

Debit

Credit

Debit

Credit

Debit

Credit

Cash

35

 

 

 

 

 

Accounts receivable

9

 

 

 

 

 

Prepaid insurance

6

 

 

 

 

 

Machinery

80

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

Accounts payable

 

9

 

 

 

 

Wages payable

 

 

|

 

 

Income taxes payable

 

 

 

 

 

Contributed capital (4.000 shares)

 

73

 

 

 

 

Retained earnings

4

 

 

 

 

 

Revenues (not detailed)

 

84

 

 

 

 

Expenses (not detailed)

32

 

 

 

 

 

Totals

166

166

 

 

 

 

Other data not yet recorded at December 31. 2011 include:

a.  Insurance expired during 2011, $4.

b.  Wages payable, $5.

c.  Depreciation expense for 2011, $8.

d.  Income tax expense, $9.

Required:

1.  Prepare the adjusting entries for 2011.

2.  Complete the trial balance Adjustments and Adjusted columns.

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