Question
Tunstall, Incorporated, a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following
Tunstall, Incorporated, a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December 31: Cash Accounts receivable Supplies Prepaid insurance Service trucks Accumulated depreciation Other assets Accounts payable Tunstall, Incorporated Unadjusted Trial Balance At December 31 Debit Credit 46,900 10,700 440 610 17,100 7,800 9,860 2,290 Wages payable Income taxes payable Notes payable (3 years; 10% interest due each September 30) 16,000 Common stock (4,300 shares outstanding) 1,896 Additional paid-in capital 17,064 Retained earnings 5,400 Service revenue 84,710 Wages expense 16,200 Remaining expenses (not detailed; excludes income tax) 33,350 Income tax expense Totals 135,160 135,160 Data not yet recorded at December 31 included: a. The supplies count on December 31 reflected $200 in remaining supplies on hand to be used in the next year. b. Insurance expired during the current year, $610. c. Depreciation expense for the current year, $4,000. d. Wages earned by employees not yet paid on December 31, $680. e. Three months of interest expense (for the note payable borrowed on October 1 of the current year) was incurred in the current year. f. Income tax expense, $5,180. Journal entry worksheet < 1 Record the closing entry. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Wages expense Insurance expense Income tax expense Record entry Clear entry View general journal
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