Question
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
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:
1. Prepare the adjusting entries for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands.)
2. 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.)
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