E4-16 Recording Four Adjusting Entries, Completing a Trial Balance, Preparing Financial S 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 pperations ended December 31. To simp amounts given are in thousands of dollars. Other data not yet recorded at December 31 are as follows: Unadjusted Debit Credit $ 50 21 8 120 $ 12 21 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) Totals 102 6 114 44 $249 $245 $249 a. Insurance expired during the year. $6. b. Depreciation expense for the year, $6. c. Wages payable. $8 d. Income tax expense, $21. 4-a. Using the adjusted balances, prepare a statement of earnings. (Enter your answers in thousands of doll share" to 2 decimal places.) CAYUGA LTD. Statement of Earnings For the Year Ended December 31 (In thousands of dollars, except for Earnings per Share) Revenues $ 114 Expenses Earnings before income tax Income tax expense 05 Earnings per share 4-6. Using the adjusted balances, prepare a statement of changes in equity. (Enter your answers in th answers should be indicated by minus sign.) CAYUGA LTD. Statement of Retained Earnings For the Year Ended December 31 (in thousands of dollars) Balance, January 1 Balance, December 31 0 CAYUGA LTD. Statement of Financial Position As at December 31 (In thousands of dollars) Assets ces Total assets 0 0 $ $ Liabilities Total liabilities Shareholders' Equity 0 Total liabilities and shareholders' equity $ 0 3. Complete the trial balance adjustments and adjusted columns. (For revenues and expenses e in the adjustment column. Enter your answers in thousands of dollars.) CAYUGA LTD. Trial Balance As at December 31 (In thousands of dollars) Unadjusted Adjustments Debit Credit Debit Credit $ 50 21 Adjusted Debit Credit 50 21 8 6 2 120 120 $ 12 6 $ 18 21 21 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 8 8 21 21 102 102 6 6 114 114 44 41 85 $ 249 $ 249 41 41 $ 284 $ 284