E4-22 Recording Closing Entries LO4-4

Green Valley Company prepared the following trial balance at the end of its first year of operations ending December 31. To simplify the case, the amounts given are in thousands of dollars.

	UNADJUSTED
Account Titles	Debit		Credit
Cash	20
Accounts receivable	13
Prepaid insurance	8
Machinery	85
Accumulated depreciation
Accounts payable			11
Wages payable
Income taxes payable
Common stock (4,000 shares)			4
Additional paid-in capital			67
Retained earnings	6
Revenues (not detailed)			82
Expenses (not detailed)	32
Totals	164		164

Other data not yet recorded at December 31 include:

Insurance expired during the current year, $7.

Wages payable, $4.

Depreciation expense for the current year, $9.

Income tax expense, $11.

Required:

2. Using the adjusted balances, give the closing entry for the current year. (Enter your answers in thousands.)