Recording Four Adjusting Journal Entries and Preparing an Adjusted Trial Balance, Reporting an Income Statement, Statement of Retained Earnings, and Balance Sheet and Recording Closing Entries [LO 4-2, LO 4-3, LO 4-4 and LO 4-5]

[The following information applies to the questions displayed below.]

Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second year of operations ending December 31, 2013. The amounts given are in thousands of dollars.

Account Titles	Debit			Credit
Cash	$	34
Accounts Receivable		7
Prepaid Insurance		5
Equipment		76
Accumulated Depreciation				$	0
Accounts Payable					7
Contributed Capital					72
Retained Earnings					5
Sales Revenue					72
Administrative Expenses		22
Wages Expense		12
Totals	$	156		$	156

Other data not yet recorded at December 31, 2013:

a.

Insurance expired during 2013, $3.

b.

Depreciation expense for 2013, $5.

c.

Wages payable, $6.

d.

d.Income tax expense, $7.

Required

1.	Prepare the adjusting journal entries for 2013. (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.

Using T-accounts, determine the adjusted balances in each account and prepare an adjusted trial balance as of December 31, 2013. (Enter your answers in thousands.)

Cash					Accounts Receivable
Beg. Bal.					Beg. Bal.
End. Bal.	0				End. Bal.	0
Prepaid Insurance					Equipment
Beg. Bal.					Beg. Bal.
End. Bal.	0				End. Bal.	0
Accumulated Depreciation					Accounts Payable
Beg. Bal.					Beg. Bal.
End. Bal.		0			End. Bal.		0
Wages Payable					Income Tax Payable
Beg. Bal.					Beg. Bal.
End. Bal.		0			End. Bal.		0
Contributed Capital					Retained Earnings
Beg. Bal.					Beg. Bal.
End. Bal.		0			End. Bal.		0
Sales Revenue					Administrative Expenses
Beg. Bal.					Beg. Bal.
End. Bal.		0			End. Bal.	0
Wages Expense					Depreciation Expense
Beg. Bal.					Beg. Bal.
End. Bal.	0				End. Bal.	0
Insurance Expense					Income Tax Expense
Beg. Bal.					Beg. Bal.
End. Bal.	0				End. Bal.	0

MINT CLEANING INC.
Adjusted Trial Balance
December 31, 2013
(in thousands of dollars)
Account Titles	Debit	Credit
Cash
Accounts Receivable
Prepaid Insurance
Equipment
Accumulated Depreciation
Accounts Payable
Wages Payable
Income Tax Payable
Contributed Capital
Retained Earnings
Sales Revenue
Administrative Expenses
Wages Expense
Depreciation Expense
Insurance Expense
Income Tax Expense
Totals	$0	$0

Net income

by