Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. (Assume amounts are reported in thousands of dollars.)Account Titles Debit CreditCash $ 55Accounts Receivable 4Prepaid Insurance 7Equipment 114Accumulated Depreciation $ 0Accounts Payable 4Common Stock 110Retained Earnings 14Sales Revenue 122Insurance Expense 0Salaries and Wages Expense 27Supplies Expense 43Totals $ 250 $ 250Other data not yet recorded at December 31:Insurance expired during the year, $5.Depreciation expense for the year, $4.Salaries and wages payable, $7.Income tax expense, $9.How would I create the closing entries for this information

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Asked Feb 5, 2019
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Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. (Assume amounts are reported in thousands of dollars.)

Account Titles Debit Credit
Cash $ 55
Accounts Receivable 4
Prepaid Insurance 7
Equipment 114
Accumulated Depreciation $ 0
Accounts Payable 4
Common Stock 110
Retained Earnings 14
Sales Revenue 122
Insurance Expense 0
Salaries and Wages Expense 27
Supplies Expense 43
Totals $ 250 $ 250

Other data not yet recorded at December 31:
Insurance expired during the year, $5.
Depreciation expense for the year, $4.
Salaries and wages payable, $7.
Income tax expense, $9.

How would I create the closing entries for this information

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Expert Answer

Step 1

Step1: Preparation of adjusting journal entries. We have,

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Step 2

Step2: Preparation of post adjusting trial balance. We have,

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Step 3

Step3: Preparation of the inco...

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