The unadjusted trial balance of Loose Leaf Co. at December 31, 2010, the end of the current year, is shown at the top of the next page. The data needed to determine year-end adjustments are as follows:

a. Supplies on hand at December 31 are $1,500.

b. Insurance premiums expired during the year are $2,500.

c. Depreciation of equipment during the year is $4,700.

d. Depreciation of trucks during the year is $3,100.

e. Wages accrued but not paid at December 31 are $750.

Instructions
1. For each account listed in the unadjusted trial balance, enter the balance in the appropriate Balance column of a four-column account and place a check mark (() in the Posting Reference column.
2. Optional: Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet. Add the accounts listed in part (3) as needed.
3. Journalize and post the adjusting entries, inserting balances in the accounts affected. The following additional accounts from Loose Leaf's chart of accounts should be used: Wages Payable, 22; Supplies Expense, 52; Depreciation Expense ”Equipment, 54; Depreciation Expense” Trucks, 56; Insurance Expense, 57.
4. Prepare an adjusted trial balance.
5. Prepare an income statement, a statement of owner's equity (no additional investments were made during the year), and a balance sheet.
6. Journalize and post the closing entries. (Income Summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry.
7. Prepare a post-closing trial balance.

Transcribed Image Text:

Loose Leaf Co. Unadjusted Trial Balance December 31, 2010 Debit Balances Credit Balances 1,825 4,820 7,500 11 Cash 13 Supplies 14 Prepaid Insurance 16 Equipment 17 Accumuleted Depreciation-Equipment 18 Trucks 19 Accumulated Depreciation-Trucks 21 Accounts Payable 31 Reed Barmack, Capital 32 Reed Barmack, Drawing 41 Service Revenue. 51 Wages Expense 53 Rent Expense 55 Truck Expense 59 Miscellaneous Expense 70,200 12,050 50,000 27,100 12,015 27,885 2,500 120,950 48,010 7,600 5,350 2,195 200,000 200,000