E4-16 Recording Four Adjusting Journal Entries and Preparing an Adjusted Trial Balance, Reporting an Income Statement, Statement of Retained Earnings, and Balance Sheet and Recording Closing Entries [LO 4-2, LO 4-3, LO 4-4 and LO 4-5]

[The following information applies to the questions displayed below.]

Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second year of operations ending December 31.

Account Titles	Debit			Credit
Cash	$	38
Accounts Receivable		9
Prepaid Insurance		6
Equipment		80
Accumulated Depreciation				$	0
Accounts Payable					9
Common Stock					76
Retained Earnings					4
Sales Revenue					80
Insurance Expense		0
Salaries and Wages Expense		10
Supplies Expense		26
Totals	$	169		$	169

Other data not yet recorded at December 31:
a.	Insurance expired during the year, $5.
b.	Depreciation expense for the year, $4.
c.	Wages payable, $7.
d.	Income tax expense, $9.

3.

value: 8.33 points

Required information

E4-16 Part 1

Required:

1.	Prepare the adjusting journal entries for the year ended December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

4.

value: 8.33 points

Required information

E4-16 Part 2

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