Green Valley Company prepared the following trial balance at the end of its first year of operations ending December 31. To simplify the case, the amounts given are in thousands of dollars. UNADJUSTED Account Titles Debit Credit Cash 19 Accounts receivable 16 Prepaid insurance 11 Machinery 78 Accumulated depreciation Accounts payable 12 Wages payable Income taxes payable Common stock (7,000 shares) 7 Additional paid-in capital 58 Retained earnings 10 Revenues (not detailed) 83 Expenses (not detailed) 26 Totals 160 160 Other data not yet recorded at December 31 include Insurance expired during the current year, $9. Wages payable, $10. Depreciation expense for the current year, $12. Income tax expense, $13. Required: Prepare the adjusting entries for the current year. Complete the trial balance Adjustments and Adjusted columns. The “Reference” column is for the reference letter of the adjusting entry effect.
Green Valley Company prepared the following trial balance at the end of its first year of operations ending December 31. To simplify the case, the amounts given are in thousands of dollars. UNADJUSTED Account Titles Debit Credit Cash 19 Accounts receivable 16 Prepaid insurance 11 Machinery 78 Accumulated depreciation Accounts payable 12 Wages payable Income taxes payable Common stock (7,000 shares) 7 Additional paid-in capital 58 Retained earnings 10 Revenues (not detailed) 83 Expenses (not detailed) 26 Totals 160 160 Other data not yet recorded at December 31 include Insurance expired during the current year, $9. Wages payable, $10. Depreciation expense for the current year, $12. Income tax expense, $13. Required: Prepare the adjusting entries for the current year. Complete the trial balance Adjustments and Adjusted columns. The “Reference” column is for the reference letter of the adjusting entry effect.
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 7DQ
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Question
Green Valley Company prepared the following
UNADJUSTED | ||
---|---|---|
Account Titles | Debit | Credit |
Cash | 19 | |
Accounts receivable | 16 | |
Prepaid insurance | 11 | |
Machinery | 78 | |
Accounts payable | 12 | |
Wages payable | ||
Income taxes payable | ||
Common stock (7,000 shares) | 7 | |
Additional paid-in capital | 58 | |
10 | ||
Revenues (not detailed) | 83 | |
Expenses (not detailed) | 26 | |
Totals | 160 | 160 |
Other data not yet recorded at December 31 include
- Insurance expired during the current year, $9.
- Wages payable, $10.
- Depreciation expense for the current year, $12.
- Income tax expense, $13.
Required:
- Prepare the
adjusting entries for the current year. - Complete the trial balance Adjustments and Adjusted columns. The “Reference” column is for the reference letter of the adjusting entry effect.
Expert Solution
Step 1
- A journal entry is a form of accounting entry that is used to report a business transaction in a company's accounting records.
- A trial balance's main function is to confirm that the entries in a firm's accounting system are mathematically valid.
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