The unadjusted trial balance of Recessive Interiors at January 31, 2016, the end of the year, follows:
Recessive Interiors
UNADJUSTED TRIAL BALANCE
January 31, 20
|
ACCOUNT TITLE
|
DEBIT
|
CREDIT
|
|
1
|
Cash
|
13,100.00
|
|
|
2
|
Supplies
|
8,000.00
|
|
|
3
|
Prepaid Insurance
|
7,500.00
|
|
|
4
|
Equipment
|
113,000.00
|
|
|
5
|
Accumulated Depreciation-Equipment
|
|
12,000.00
|
|
6
|
Trucks
|
90,000.00
|
|
|
7
|
Accumulated Depreciation-Trucks
|
|
27,100.00
|
|
8
|
Accounts Payable
|
|
4,500.00
|
|
9
|
Jeanne McQuay, Capital
|
|
126,400.00
|
|
10
|
Jeanne McQuay, Drawing
|
3,000.00
|
|
|
11
|
Service Revenue
|
|
155,000.00
|
|
12
|
Wages Expense
|
72,000.00
|
|
|
13
|
Rent Expense
|
7,600.00
|
|
|
14
|
Truck Expense
|
5,350.00
|
|
|
15
|
Miscellaneous Expense
|
5,450.00
|
|
|
16
|
Totals
|
325,000.00
|
325,000.00
|
The data needed to determine year-end adjustments are as follows:
• Supplies on hand at January 31 are $2,850.
• Insurance premiums expired during the year are $3,150.
• Depreciation of equipment during the year is $5,250.
• Depreciation of trucks during the year is $4,000.
• Wages accrued but not paid at January 31 are $900.
Required:
1. For each account listed in the unadjusted 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. Enter Balance in the ITEM 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 January 31. Refer to the Chart of Accounts for account titles.
b. Post the adjusting entries to the ledger, inserting balances in the accounts affected. Leave the ITEM column blank.
4. Prepare an adjusted trial balance.
5. Prepare an income statement, a statement of owner's equity, and a balance sheet.
6. a. Journalize the closing entries on page 27 of the journal. Refer to the Chart of Accounts for account titles.
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. Leave the ITEM column blank.
7. Prepare a post-closing trial balance.
Be sure to read the instructions for each financial statement carefully.