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Complete the trial balance adjustments and adjusted columns E4-16 Recording Four Adjusting Entries, Completing a Trial Balance, Preparing Financial Statements, and Recording Closing Entries LO4-1,
Complete the trial balance adjustments and adjusted columns E4-16 Recording Four Adjusting Entries, Completing a Trial Balance, Preparing Financial Statements, and Recording Closing Entries LO4-1, 4-2, 4-4 Cayuga Ltd. prepared the following trial balance at the end of its first year of operations ended December 31. To simplify the case, the amounts glven are in thousands of dollars. Other data not yet recorded at December 31 are as follows: Onadjusted Account Sitten Debit Credit Cash 5.43 Accounts receivable Prepaid insurance 6 Machinery (20-year life, no residual value) 80 Accumulated depreciation Accounts payable Wages payable se taxes payable Contributed capital (4,000 shares) Retained earnings (deficit) Revenues not detailed) Expenses (not detailed) Totals $184 14 $ 16 68 94 37 $184 a Insurance expired during the year. $4 b. Depreciation expense for the year, $4. a. Insurance expired during the year, $4. b. Depreciation expense for the year, $4. c. Wages payable, $9. d. Income tax expense, $14. transaction/event, select "No journal entry required" in the first account field.) Answer is complete and correct. General Journal No Transaction Debit Credit 1 a 4 Insurance expense Prepaid insurance 00 4 > 2 b. 4 Depreciation expenso Accumulated depreciation, machinery 4 3 0. Wages expense Wages payable 9 4 d 14 Income tax expense Income tax payable 14 2. Show the effects of the adjusting entries on net earnings and cash. (Enter your ar there is no effect.) Answer is complete and correct. Transaction a. 4 b. Effect on Net Earnings Decrease by $ Decrease by $ Decrease by $ Decrease by $ 4 Effect on Cash None None None None OOOO C. 9 d. 14 Answer is not complete. CAYUGA LTD. Trial Balance As at December 31 (in thousands of dollars) Unadjusted Adjustments Debit Credit Debit Credit $ 43 14 Adjusted Debit Credit 4 2 6 80 $ $ 8 4 LA 12 14 Account Titles Cash Accounts receivable Prepaid insurance Machinery Accumulated depreciation Accounts payable Wages payable Income taxes payable Contributed capital Retained earnings (deficit) Revenues (not detailed) Expenses (not detailed) Totals 9 9 14 14 68 4 94 > > 31 68 37 $ 184 $ 184 31 31 $ 70 $ 35
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