Seneca Company prepared the following trial balance at the end of its first year ot operations ending December 31, 2003. To simplify the ease, the amounts given are in thousands of dollars.

Other data not yet recorded at December 31, 2003:

a. Insurance expired during 2003, $5.

b. Depreciation expense for 2003, $4.

c. Wages payable, $7.

d. Income tax expense, $9.
Required: 1. Prepare the adjusting entries for 2003. 2. Complete the trial balance Adjustments and Adjusted columns.

Transcribed Image Text:

UNADJUSTED ADJUSTMENTS ADJUSTED Credit Account Titles Debit Credit Debit Credit Debit Cash 38 Accounts receivable 9 Prepaid insurance 6 Machinery 80 Accumulated depreciation Accounts payable Wages payable Income taxes payable 9 Contributed capital (4,000 shares) 76 Retained earnings 4 Revenues (not detailed) 84 Expenses (not detailed) 32 Totals 169 169