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 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 (6,000 shares) Retained earnings (deficit) Revenues (not detailed) Expenses (not detailed) Unadjusted Debit Credit 45 16 8 120 12 16 102 6 104 39 Totals 234 234 a. Insurance expired during 2018, $6. b. Depreciation expense for 2018, $6. c. Wages payable, $11. d. Income tax expense, $16. 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 Account Titles Debit Credit Cash 45 45 16 16 8 6 2 120 120 12 6 18 16 16 Accounts receivable Prepaid insurance Machinery Accumulated depreciation Accounts payable Wages payable Income taxes payable Contributed capital Retained earnings (deficit) Revenues (not detailed) 11 11 16 16 102 102 6 6 104 104 Expenses (not detailed) 39 39 78 Totals 234 234 39 39 267 267 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) 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
