Instructions The unadjusted trial balance of Lakota Freight Co. at March 31, 20Y4, the end of the year, follows: Lakota Freight Co. UNADJUSTED TRIAL BALANCE March 31, 2014 ACCOUNT TITLE DEBIT CREDIT 1 Cash 10,000.00 2 Supplies 31,000.00 3 Prepaid Insurance 4,800.00 4 Equipment 110,000.00 5 Accumulated Depreciation Equipment 25,000.00 6 Trucks 40,000.00 7 Accumulated Depreciation-Trucks 15,000.00 8 Accounts Payable 5,000.00 9 Common Stock 26,000.00 10 Retained Earnings 38,900.00 11 Dividends 15,000.00 12 Service Revenue 170,000.00 13 Wages Expense 45,000.00 14 Rent Expense 10,300.00 15 Truck Expense 9,000.00 16 Miscellaneous Expense 4,800.00 17 Totals 279,900.00 279,900.00 The data needed to determine vear-end adiustments are as follows: Instructions A. Supplies on hand at March 31 are $7,000. B. Insurance premiums expired during year are $2,400. C. Depreciation of equipment during year is $8,550. D. Depreciation of trucks during year is $6,000. E. Wages accrued but not paid at March 31 are $700. Required: 1. For each account listed in the trial balance, enter the balance in the appropriate Balance column of a four-column account and select the check mark in the Post. Ref. column. 2. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the work sheet. 3. a. Journalize the adjusting entries on Page 26 of the journal. Adjusting entries are recorded on March 31. Refer to the Chart of Accounts for exact wording of account titles. b. Post the adjusting entries to the ledger, inserting balances in the accounts affected. 4. Prepare an adjusted trial balance. 5. a. Prepare an income statement for the year ended March 31, 20Y4. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. You will not need to enter colons (:) on the income statement. Refer to the Chart of Accounts for exact wording of account titles. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names. b. Prepare a statement of stockholders' equity for the year ended March 31, 20Y4, additional common stock of $8,000 was issued. Be sure to complete the statement heading. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names. For those boxes in which you must enter subtracted or negative numbers use a minus sign. c. Prepare a balance sheet as of March 31, 20Y4. Be sure to complete the statement heading. Fixed assets must be entered in order according to account number. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary. Refer to the Chart of Accounts for exact wording of account titles. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 6. a. Journalize the closing entries on page 27 of the journal. (Note: Complete the adjusted trial balance, the income statement, the statement of stockholders' equity, and the balance sheet BEFORE completing part 6. a.) b. Post the closing entries, inserting balances in the accounts affected. Leave the ITEM column BLANK for each row except when entering an account balance in the first row. In that case, enter the word Balance in the ITEM column in the first row. If the account balance is zero (0) after closing entries are posted, enter a zero (0) in the account's normal balance column. 7. Prepare a post-closing trial balance. Chart of Accounts CHART OF ACCOUNTS Lakota Freight Co. General Ledger ASSETS REVENUE 11 Cash 41 Service Revenue 13 Supplies 14 Prepaid Insurance EXPENSES 51 Wages Expense 16 Equipment 17 Accumulated Depreciation-Equipment 52 Supplies Expense 18 Trucks 53 Rent Expense 19 Accumulated Depreciation-Trucks 54 Truck Expense 55 Depreciation Expense-Equipment LIABILITIES 56 Depreciation Expense-Trucks 21 Accounts Payable 57 Insurance Expense 22 Wages Payable 59 Miscellaneous Expense EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends Labels and Amount Descriptions Labels Current assets Current liabilities Expenses For the Year Ended March 31, 20Y4 March 31, 2074 Property, plant, and equipment Revenues Amount Descriptions Book value-equipment Book value-trucks Balances, April 1, 2013 Balances, March 31, 20Y4 Dividends Issued common stock Net income Net loss Total assets Total current assets Total expenses Total liabilities Total liabilities and stockholders' equity Total property, plant, and equipment Total stockholders' equity Journal 3. a. Journalize the adjusting entries on Page 26 of the journal. Adjusting entries are recorded on March 31. Refer to the Chart of Accounts for exact wording of account titles. 6. a. Journalize the closing entries on page 27 of the journal. (Note: Complete the adjusted trial balance, the income statement, the statement of stockholders' equity, and the balance sheet BEFORE completing part 6. a.) PAGE 26 PAGE 27 ACCOUNTING EQUATION JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIEQUITY 1 Adjusting Entries 2 3 4. 5 6 7 8 9 10 11 Ledger 1. For each account listed in the trial balance, use 3/31 as the date, enter the word "Balance", select the check mark in the Post. Ref. column, and then enter the balance in the appropriate Balance column of a four-column account. 3. b. Post the adjusting entries to the ledger, inserting balances in the accounts affected. 6. b. Post the closing entries, inserting balances in the accounts affected. Leave the ITEM column BLANK for each row except when entering an account balance in the first row. If the account balance is zero (0) after closing entries are posted, enter a zero (0) in the account's normal balance column. LEDGER Account: Cash Account: Supplies Account: Prepaid Insurance Account: Equipment Account: Accumulated Depreciation-Equipment Account: Trucks Account: Accumulated Depreciation-Trucks Account: Accounts Payable Account: Wages Payable Account: Common Stock Account: Retained Earnings Account: Dividends Account: Service Revenue Account: Wages Expense Account: Supplies Expense Account: Rent Expense Account: Truck Expense Account: Depreciation Expense-Equipment Account: Depreciation Expense-Trucks Account: Insurance Expense Account: Miscellaneous Expense Account No. 11 Account No. 13 Account No. 14 Account No. 16 Account No. 17 Account No. 18 Account No. 19 Account No. 21 Account No. 22 Account No. 31 Account No. 32 Account No. 33 Account No. 41 Account No. 51 Account No. 52 Account No. 53 Account No. 54 Account No. 55 Account No. 56 Account No. 57 Account No. 59 Adjusted Trial Balance X 4. Prepare an adjusted trial balance. Lakota Freight Co. ADJUSTED TRIAL BALANCE March 31, 2014 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Supplies 3 Prepaid Insurance 4 Equipment 5 Accumulated Depreciation Equipment 6 Trucks 7 Accumulated Depreciation-Trucks 8 Accounts Payable 9 Wages Payable 10 Common Stock 11 Retained Earnings 12 Dividends 13 Service Revenue 14 Wages Expense 15 Supplies Expense 16 Rent Expense 17 Truck Expense 18 Depreciation Expense-Equipment 19 Depreciation Expense Trucks 20 Insurance Expense 21 Miscellaneous Expense 22 Totals Income Statement 5a. Prepare an income statement for the year ended March 31, 20Y4. Be sure to complete the statement heading. You will not need to enter colons (:) on the income statement. Refer to the Chart of Accounts for exact wording of account titles. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Lakota Freight Co. Income Statement (Label) 1 2 (Label) 3 4 5 6 7 8 9 10 11 12 Statement of Stockholders' Equity 5b. Prepare a statement of stockholders' equity for the year ended March 31, 20Y4, additional common stock of $8,000 was issued. Be sure to complete the statement heading. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Lakota Freight Co. Statement of Stockholders' Equity (Label) Common Stock 1 Retained Earnings Total 2 3 4 5 6 Balance Sheet 5c. Prepare a balance sheet as of March 31, 2014. Be sure to complete the statement heading. Fixed assets must be entered in order according to account number. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary. Refer to the Chart of Accounts for exact wording of account titles. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names. For those boxes in which you must enter subtracted or negative numbers use minus sign. Lakota Freight Co. Balance Sheet (Label) Assets 2 (Label) 3 4 5 6 7 (Label) 8 9 10 11 12 13 14 15 Liabilities 16 17 (Label) 18 19 20 21 Stockholders' Equity 22 23 24 25 Post-closing Trial Balance X 7. Prepare a post-closing trial balance. Lakota Freight Co. POST-CLOSING TRIAL BALANCE March 31, 2014 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Supplies 3 Prepaid Insurance 4 Equipment 5 Accumulated Depreciation-Equipment 6 Trucks 7 Accumulated Depreciation-Trucks 8 Accounts Payable 9 Wages Payable 10 Common Stock 11 Retained Earnings 12 Totals