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Ledger accounts, adjusting entries, financial statements, and closing entries; optional spreadsheet The unadjusted trial balance of Lakota Freight Co. at March 31, 2018, the end of the year, follows: Lakota Freight Co. Unadjusted Trial Balance March 31, 2018 Account No. Debit Balances Credit Balances Cash................................................ 11 12,000 Supplies............................................ 13 30,000 Prepaid Insurance.................................... 14 3,600 Equipment.......................................... 16 110,000 Accumulated Depreciation—Equipment............... 17 25,000 Trucks............................................... 18 60,000 Accumulated Depreciation—Trucks................... 19 15,000 Accounts Payable.................................... 21 4,000 Common Stock...................................... 31 26,000 Retained Earnings................................... 32 70,000 Dividends........................................... 33 15,000 Service Revenue..................................... 41 160,000 Wages Expense...................................... 51 45,000 Rent Expense........................................ 53 10,600 Truck Expense....................................... 54 9,000 Miscellaneous Expense............................... 59 4,800 300,000 300,000 The data needed to determine year-end adjustments are as follows: (A) Supplies on hand at March 31 are $7,500. (B) Insurance premiums expired during year are $1,800. (C) Depreciation of equipment during year is $8,350. (D) Depreciation of trucks during year is $6,200. (E) Wages accrued but not paid at March 31 are $600. Instructions 1. For each account listed in the 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 spread 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. Record the adjusting entries on Page 26 of the journal. The following additional accounts from Lakota Freight Co.’s chart of accounts should be used: Wages Payable, 22; Supplies Expense, 52; Depreciation Expense—Equipment, 55; Depreciation Expense—Trucks, 56; Insurance Expense, 57. 4. Prepare an adjusted trial balance. 5. Prepare an income statement, a retained earnings statement, and a balance sheet. 6. Journalize and post the closing entries. Record the closing entries on Page 27 of the journal. (Income Summary is account #34 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.

BuyFind

Corporate Financial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781305653535
BuyFind

Corporate Financial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781305653535

Solutions

Chapter
Section
Chapter 4, Problem 4.4APR
Textbook Problem

Ledger accounts, adjusting entries, financial statements, and closing entries; optional spreadsheet

The unadjusted trial balance of Lakota Freight Co. at March 31, 2018, the end of the year, follows:

Lakota Freight Co.

Unadjusted Trial Balance

March 31, 2018

  Account No. Debit Balances Credit Balances
Cash................................................ 11 12,000
Supplies............................................ 13 30,000
Prepaid Insurance.................................... 14 3,600
Equipment.......................................... 16 110,000
Accumulated Depreciation—Equipment............... 17 25,000
Trucks............................................... 18 60,000
Accumulated Depreciation—Trucks................... 19 15,000
Accounts Payable.................................... 21 4,000
Common Stock...................................... 31 26,000
Retained Earnings................................... 32 70,000
Dividends........................................... 33 15,000
Service Revenue..................................... 41 160,000
Wages Expense...................................... 51 45,000
Rent Expense........................................ 53 10,600
Truck Expense....................................... 54 9,000
Miscellaneous Expense............................... 59 4,800
300,000 300,000

The data needed to determine year-end adjustments are as follows:

(A) Supplies on hand at March 31 are $7,500.

(B) Insurance premiums expired during year are $1,800.

(C) Depreciation of equipment during year is $8,350.

(D) Depreciation of trucks during year is $6,200.

(E) Wages accrued but not paid at March 31 are $600.

Instructions

1. For each account listed in the 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 spread 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. Record the adjusting entries on Page 26 of the journal. The following additional accounts from Lakota Freight Co.’s chart of accounts should be used: Wages Payable, 22; Supplies Expense, 52; Depreciation Expense—Equipment, 55; Depreciation Expense—Trucks, 56; Insurance Expense, 57.

4. Prepare an adjusted trial balance.

5. Prepare an income statement, a retained earnings statement, and a balance sheet.

6. Journalize and post the closing entries. Record the closing entries on Page 27 of the journal. (Income Summary is account #34 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.

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Chapter 4 Solutions

Corporate Financial Accounting
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