The unadjusted trial balance of Fix-It Co. at December 31, 2015, the end of the current year, is shown below.

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

a. Supplies on hand at December 31 are $4,000.

b. Insurance premiums expired during year are $2,000.

c. The equipment has a life of 20 years.

d. The trucks have a useful life of 5 years.

e. Wages accrued but not paid at December 31 are $450.

Instructions

1. For each account listed in the trial balance, enter the balance in the appropriate Balance column of a three-column account and place a check mark (✔) in the Posting Reference column.

2. Journalize and post the adjusting entries, inserting balances in the accounts affected. The following additional accounts from Fix-It’s chart of accounts should be used: Wages Payable, 2020; Supplies Expense, 5020; Depreciation Expense, 5040; Insurance Expense, 5070.

3. Prepare an adjusted trial balance.

4. Prepare an income statement, a statement of owner’s equity (no additional investments were made during the year), and a balance sheet.

5. Journalize and post the closing entries. (Income Summary is account #3030 in the chart of accounts.) Indicate closed accounts by inserting a line in the balance column opposite the closing entry.

6. Prepare a post-closing trial balance.

Transcribed Image Text:

Fix-lt Co Unadjusted Trial Balance December 31, 2015 Debit Balances Credit Balances 1010 Cash 1030 Supplies 1040 Prepaid Insurance 1060 Equipment.. 1070 Accurnulated Depreciation Equipment 1080 Trucks... 1090 Accumulated Depreciation Trucks. 2010 Accounts Payable 3010 Benjamin Buck, Capital 3020 Benjamin Buck, Withdrawals 4010 Service Revenue 5010 Wages Expense 5030 Rent Expense 5050 Truck Expense 5090 Miscellaneous Expense 3,950 15,295 2,735 120,000 21,209 17,500 7,400 4,015 72.976 5,000 119,950 39, 925 10,600 7,350 3,195 225,550 225.550