Prepare an adjusted trial balance. If an amount

Ledger Accounts, Adjusting Entries, Financial Statements, and Closing Entries; Optional Spreadsheet.

The unadjusted trial balance of Recessive Interiors at January 31, 2019, the end of the year, follows:

Recessive Interiors Unadjusted Trial Balance January 31, 2019
		Debit Balances		Credit Balances
11	Cash	13,100
13	Supplies	8,000
14	Prepaid Insurance	7,500
16	Equipment	113,000
17	Accumulated DepreciationEquipment			12,000
18	Trucks	90,000
19	Accumulated DepreciationTrucks			27,100
21	Accounts Payable			4,500
31	Jeanne McQuay, Capital			126,400
32	Jeanne McQuay, Drawing	3,000
41	Service Revenue			155,000
51	Wages Expense	72,000
52	Rent Expense	7,600
53	Truck Expense	5,350
59	Miscellaneous Expense	5,450
		325,000		325,000

The following additional accounts from Recessive Interiors' chart of accounts should be used: Wages Payable, 22; Depreciation Expense-Equipment, 54; Supplies Expense, 55; Depreciation Expense-Trucks, 56; Insurance Expense, 57.

The data needed to determine year-end adjustments are as follows:

Supplies on hand at January 31 are $2,850.

Insurance premiums expired during the year are $3,150.

Depreciation of equipment during the year is $5,250.

Depreciation of trucks during the year is $4,000.

Wages accrued but not paid at January 31 are $900.

Use the attached spreadsheet to complete parts 2, 3, and 6. Click on the Spreadsheet icon above to open and save the Excel file to your computer. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem.

Required:

1. For each account listed in the trial balance, notice that the balance has been entered in the appropriate general ledger account balance column of the spreadsheet. Posting to the general ledger will take place in step 3 and step 6.

2. (Optional) In the attached spreadsheet, notice that the unadjusted trial balance amounts have been entered. Enter the adjusting entries and complete the worksheet.

3. Journalize the adjusting entries on page 26 of the journal. Then post to the appropriate accounts in the general ledger in the attached spreadsheet, inserting balances in the accounts affected.

Journal				PAGE 26
Date	Account	Post. Ref.	Debit	Credit
a.
b.
c.
d.
e.

4. Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank.

Recessive Interiors Adjusted Trial Balance January 31, 2019
	Debit Balances	Credit Balances
Totals

5. Prepare an income statement.

Recessive Interiors Income Statement For the Year Ended January 31, 2019
		$
Expenses:
	$
Total expenses
		$

Prepare a Statement of Owner's Equity (no additional investments were made during the year.)

Recessive Interiors Statement of Owner's Equity For the Year Ended January 31, 2019
		$
	$
		$

Prepare a balance sheet.

Recessive Interiors Balance Sheet January 31, 2019
Assets				Liabilities
Current assets:				Current liabilities:
		$			$
				Total liabilities		$
Total current assets			$
Property, plant and equipment:				Owner's Equity
	$
		$
	$
Total property, plant and equipment
Total assets			$	Total liabilities and owner's equity		$

6. Journalize the closing entries on page 27 of the journal. Then post to the general ledger in the attached spreadsheet. For a compound transaction, if an amount box does not require an entry, leave it blank.

Journal				PAGE 27
Date	Account	Post. Ref.	Debit	Credit
Close expenses, revenues &income/loss
Close drawing

7. Prepare a post-closing trial balance. If an amount box does not require an entry, leave it blank.

Recessive Interiors Post-Closing Trial Balance January 31, 2019
	Debit Balances	Credit Balances
Totals