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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

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.

Using the above adjusted balances, prepare a classified balance sheet for 2015. (Amounts to be deducted should be indicated by a minus sign.)

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