Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second year of

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Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second year of operations, ending December 31, 2017. To simplify this exercise, the amounts given in the unadjusted trial balance are in thousands of dollars. 

Account Titles Debit Credit Cash $ 38 Accounts Receivable Prepaid Insurance Machinery 80 Accumulated Depreciation $ O Accounts Payable Contributed Capital Retained Earnings 76 4 Sales Revenue 80 Administrative Expenses 26 Wages Expense 10 Totals $169 $169


Other data not yet recorded at December 31, 2017, is as follows: a. Insurance expired during 2017, $5 

b. Depreciation expense for 2017, $4 

c. Wages payable, $7 

d. Income tax expense, $9 


Required: 

1. Prepare the adjusting journal entries for 2017. 

2. Using T-accounts, determine the adjusted balances in each account and prepare an adjusted trial balance as of December 31, 2017.

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Related Book For  book-img-for-question

Fundamentals of Financial Accounting

ISBN: 978-1259269868

5th Canadian edition

Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh

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