Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second year of operations, ending December 31. Account TitlesDebitCredit Cash$38 Accounts Receivable 9 Prepaid Insurance 6 Machinery 80 Accumulated Depreciation $0 Accounts Payable 9 Contributed Capital 76 Retained Earnings 4 Sales Revenue 80 Administrative Expenses 26 Wages Expense 10 Totals$169 $169 Other data not yet recorded at December 31 are as follows:Insurance expired during the year, $5.Depreciation expense for the year, $4.Wages payable, $7.Income tax expense, $9.Required:1. Prepare the adjusting journal entries for the year ended December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2. Using T-accounts, determine the adjusted balances in each account and prepare an adjusted trial balance as of December 31.

Debit the receiver, credit the giver. Debit what comes in, credit what goes out. Debit all expenses…

Answered: Mint Cleaning Inc. prepared the…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter22: End-of-fiscal-period Work For A Corporation

Section: Chapter Questions

Problem 1AP

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Question

Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second year of operations, ending December 31.

Account Titles	Debit	Credit
Cash	$	38
Accounts Receivable		9
Prepaid Insurance		6
Machinery		80
Accumulated Depreciation			$	0
Accounts Payable				9
Contributed Capital				76
Retained Earnings				4
Sales Revenue				80
Administrative Expenses		26
Wages Expense		10

Totals	$	169	$	169

Other data not yet recorded at December 31 are as follows:

Insurance expired during the year, $5.
Depreciation expense for the year, $4.
Wages payable, $7.
Income tax expense, $9.

Required:
1. Prepare the adjusting journal entries for the year ended December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Using T-accounts, determine the adjusted balances in each account and prepare an adjusted trial balance as of December 31.

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