Part B The following information relates to December 31, 2019: o. One month of the prepaid insurance has expired. p. The December portion of the rent paid on December 1 has expired. 9. A physical count indicates that $350 of supplies is still on hand. r. The amount collected in transaction mis unearned at December 31. s. Three days of wages for December 29, 30, and 31 are unpaid, amounting to $1,500. These will be paid in January. t. The truck has an estimated useful life of 4 years. u. Income taxes expense is $500. This amount will be paid in the next fiscal year. Required: 4. Open additional general ledger T-accounts for the following: Unused Supplies, Accumulated Depreciation, Wages Payable, Unearned Revenue, Income Taxes Payable, Depreciation Expense, Insurance Expense, Rent Expense, and Income Taxes Expense. General ledger account numbers are not necessary. 5. Prepare all necessary adjusting entries. General ledger account numbers and descriptions are not necessary. 6. Post the entries to general ledger T-accounts and calculate balances. 7. Prepare an adjusted trial balance at December 31. 8. Assume the fiscal year-end is December 31, 2019. Prepare an income statement, statement of changes in equity, and balance sheet. 9. Prepare closing entries and a post-closing trial balance at December 31, 2019. Part B, Requirement #6 After posting the adjusting entries, please calculate the ending balance for each t-account. Then check your ending balances for each of the following account: Prepaid Rent $800 Unearned Repair Revenue $2,000 Accum Dep'n Truck $208 Repair Revenue $11,800 Insurance Expense $150 Wages Expense $6,500 If the balances do not match, complete the following steps: 1. Check your math 2. Verify that you have posted your transactions correctly 3. Re-evaluate your journal entries Part B, Requirement #7 After preparing the adjusted trial balance, the totals of the debit and credit columns should be $32,108 If the debit and credit column totals do not match, complete the following steps: 1. Check your math (add the columns from the bottom up if you continue to get the same totals) 2. Make sure that all accounts with general ledger balances have been moved to the adjusted trial balance 3. Verify that you have each amount in the correct column 4. Check each amount to ensure you have transferred the correct amount from each account Part B, Requirement #17, H8 #7 - (Income Statement) Net Income $1,617 #8 (Statement of Changes in Equity) Common Stock $5,000; Retained Earnings $1,617; Total Equity $6,617 #8 (Balance Sheet) Total Assets $21,717 Total Liabilities $15,100 Total Stockholders' Equity $6,617 Part B, Requirement #9 TIP: Don't forget which accounts temporary and which ones are permanent. Remember, temporary accounts must have a ZERO balance after the closing process is complete. Post-Closing Trial Balance - Debit/Credit Totals $21,925 If the debit/credit total is incorrect, check the following account balances to verify that the amounts are correct. If the amounts are not correct, go back and check your work. Prepaid Insurance $1,650 Unused Supplies $350 Acc dep - Truck $208 Unearned repair revenue $2,000 Retained Earnings $1,617 To find errors: 1. Check your math 2. Verify that balances were transferred correctly 3. Check that the balances were placed in the correct debit/credit column Part B The following information relates to December 31, 2019: o. One month of the prepaid insurance has expired. p. The December portion of the rent paid on December 1 has expired. 9. A physical count indicates that $350 of supplies is still on hand. r. The amount collected in transaction mis unearned at December 31. s. Three days of wages for December 29, 30, and 31 are unpaid, amounting to $1,500. These will be paid in January. t. The truck has an estimated useful life of 4 years. u. Income taxes expense is $500. This amount will be paid in the next fiscal year. Required: 4. Open additional general ledger T-accounts for the following: Unused Supplies, Accumulated Depreciation, Wages Payable, Unearned Revenue, Income Taxes Payable, Depreciation Expense, Insurance Expense, Rent Expense, and Income Taxes Expense. General ledger account numbers are not necessary. 5. Prepare all necessary adjusting entries. General ledger account numbers and descriptions are not necessary. 6. Post the entries to general ledger T-accounts and calculate balances. 7. Prepare an adjusted trial balance at December 31. 8. Assume the fiscal year-end is December 31, 2019. Prepare an income statement, statement of changes in equity, and balance sheet. 9. Prepare closing entries and a post-closing trial balance at December 31, 2019. Part B, Requirement #6 After posting the adjusting entries, please calculate the ending balance for each t-account. Then check your ending balances for each of the following account: Prepaid Rent $800 Unearned Repair Revenue $2,000 Accum Dep'n Truck $208 Repair Revenue $11,800 Insurance Expense $150 Wages Expense $6,500 If the balances do not match, complete the following steps: 1. Check your math 2. Verify that you have posted your transactions correctly 3. Re-evaluate your journal entries Part B, Requirement #7 After preparing the adjusted trial balance, the totals of the debit and credit columns should be $32,108 If the debit and credit column totals do not match, complete the following steps: 1. Check your math (add the columns from the bottom up if you continue to get the same totals) 2. Make sure that all accounts with general ledger balances have been moved to the adjusted trial balance 3. Verify that you have each amount in the correct column 4. Check each amount to ensure you have transferred the correct amount from each account Part B, Requirement #17, H8 #7 - (Income Statement) Net Income $1,617 #8 (Statement of Changes in Equity) Common Stock $5,000; Retained Earnings $1,617; Total Equity $6,617 #8 (Balance Sheet) Total Assets $21,717 Total Liabilities $15,100 Total Stockholders' Equity $6,617 Part B, Requirement #9 TIP: Don't forget which accounts temporary and which ones are permanent. Remember, temporary accounts must have a ZERO balance after the closing process is complete. Post-Closing Trial Balance - Debit/Credit Totals $21,925 If the debit/credit total is incorrect, check the following account balances to verify that the amounts are correct. If the amounts are not correct, go back and check your work. Prepaid Insurance $1,650 Unused Supplies $350 Acc dep - Truck $208 Unearned repair revenue $2,000 Retained Earnings $1,617 To find errors: 1. Check your math 2. Verify that balances were transferred correctly 3. Check that the balances were placed in the correct debit/credit column