The unadjusted trial balance of Lakota Freight Co. at March 31, 2016, the end of the year, follows:

Lakota Freight Co.

UNADJUSTED TRIAL BALANCE

March 31, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	12,000.00
2	Supplies	30,000.00
3	Prepaid Insurance	3,600.00
4	Equipment	110,000.00
5	Accumulated Depreciation-Equipment		25,000.00
6	Trucks	60,000.00
7	Accumulated Depreciation-Trucks		15,000.00
8	Accounts Payable		4,000.00
9	Kaya Tarango, Capital		96,000.00
10	Kaya Tarango, Drawing	15,000.00
11	Service Revenue		160,000.00
12	Wages Expense	45,000.00
13	Rent Expense	10,600.00
14	Truck Expense	9,000.00
15	Miscellaneous Expense	4,800.00
16	Totals	300,000.00	300,000.00

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

	Supplies on hand at March 31 are $7,500.
	Insurance premiums expired during year are $1,800.
	Depreciation of equipment during year is $8,350.
	Depreciation of trucks during year is $6,200.
	Wages accrued but not paid at March 31 are $600.

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.
b.	Post the adjusting entries to the ledger, inserting balances in the accounts affected.

4.

Prepare an adjusted trial balance.

5.

Prepare an income statement, a statement of owners equity, and a balance sheet.*

6.

a.	Journalize the closing entries on page 27 of the journal.
b.	Post the closing entries to the ledger, inserting balances in the accounts affected. If the account balance is zero (0), enter a zero (0) in the account's normal balance column. If no entry is required in a cell, leave it blank.

7.

Prepare a post-closing trial balance.

* Be sure to read the instructions for each financial statement carefully.

Journal

3. a.	Journalize the adjusting entries on Page 26 of the journal. Adjusting entries are recorded on March 31.
6. a.	Journalize the closing entries on page 27 of the journal. (Note: Complete the adjusted trial balance, the income statement, the statement of owners equity, and the balance sheet BEFORE completing part 6. a.)

PAGE 26PAGE 27

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1		Adjusting Entries
2
3
4
5
6
7
8
9
10
11

Ledger

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.
3. b.	Post the adjusting entries, 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. 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.