Cayuga Ltd. prepared the following trial balance at the end of its first year of operations ending December 31, 2018. To simplify the case, the amounts given are in thousands of dollars. Other data not yet recorded at December 31, 2018, are as follows: Account Titles Cash Accounts receivable Prepaid insurance Machinery (20-year life, no residual value) Accumulated depreciation Accounts payable Wages payable Income taxes payable Contributed capital (7,000 shares) Retained earnings (deficit) Revenues not detailed) Expenses (not detailed) Unadjusted Debit Credit 41 12 9 140 14 12 119 7 99 35 Totals 244 244 a. Insurance expired during 2018, $7. b. Depreciation expense for 2018, $7. c. Wages payable, $11. d. Income tax expense, $12. 2. Show the effects of the adjusting entries on net earnings and cash. (Enter your answers in thousands of dollars. Select "None" if there is no effect.) Transaction Effect on Net Earnings Effect on Cash a. by b. by by C. d. by 3. Complete the trial balance adjustments and adjusted columns. (For revenues and expenses enter the total amount of adjustments in the adjustment column. Enter your answers in thousands of dollars.) CAYUGA LTD. Trial Balance As at December 31, 2018 (in thousands of dollars) Unadjusted Adjustments Debit Credit Debit Credit Adjusted Debit Credit Account Titles Cash 41 41 Accounts receivable 12 12 9 140 140 14 12 12 Prepaid insurance Machinery Accumulated depreciation Accounts payable Wages payable Income taxes payable Contributed capital Retained earnings (deficit) Revenues not detailed) Expenses (not detailed) Totals 11 12 11 121 119 7 7 99 35 244 244 0 23 212 23 4-a. Using the adjusted balances, prepare a statement of earnings. (Enter your answers in thousands of dollars except "Earnings per share" which should be rounded to 2 decimal places.) CAYUGA LTD. Statement of Earnings For the Year Ended December 31, 2018 (In thousands of dollars, except for Earnings per Share information) Revenues 99 Expenses 35 Cash 41 Earnings before income tax Net earnings Earnings per share 4-b. Using the adjusted balances, prepare a statement of changes in equity. (Enter your answers in thousands of dollars. Negative amounts should be indicated by minus sign.) CAYUGA LTD. Statement of Retained Earnings For the Year Ended December 31, 2018 (in thousands of dollars) Balance, January 1, 2018 Balance, December 31, 2018 $ 0 4-c. Using the adjusted balances, prepare a statement of financial position. (Enter your answers in thousands of dollars. Negative amounts should be indicated by minus sign.) CAYUGA LTD. Statement of Financial Position As at December 31, 2018 (In thousands of dollars) Assets 0 Total assets $ 0 Liabilities Total liabilities 0 Shareholders' Equity 0 Total liabilities and shareholders' equity $ 0 5. Not available in Connect. 6. Using the adjusted balances, prepare the closing entries for 2018. (Enter your answers in thousands of dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record entry to transfer revenues to income summary. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal
