Ledger accounts, adjusting entries, financial statements, and closing entries; optional spreadsheet The unadjusted trial balance of Lakota Freight Co. at March 31, 20Y4, the end of the year, follows: 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 spreadsheet 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 statement of stockholders’ equity, and a balance sheet. During the year ended March 31, 20Y4, additional common stock of $6,000 was issued. 6. Journalize and post the closing entries. Record the closing entries on Page 27 of the journal. 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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Financial And Managerial Accounting

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Financial And Managerial Accounting

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WARREN + 1 other

Publisher: Cengage Learning,

ISBN: 9781337902663

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Answer 4

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Section

Answer 5

1, 3 and 6.

To determine

Prepare the T-accounts.

Explanation of Solution

T-account:

T-account is the form of the ledger account, where the journal entries are posted to this account. It is referred to as the T-account, because the alignment of the components of the account resembles the capital letter ‘T’.

The components of the T-account are as follows:

a) The title of the account

b) The left or debit side

c) The right or credit side

Prepare the T-accounts:

Account: Cash Account no. 11
Date		Item	Post. Ref	Debit ($)	Credit ($)	Balance
						Debit ($)	Credit ($)
20Y4
March	31	Balance	✓			12,000

Account: Supplies Account no. 13
Date		Item	Post. Ref	Debit ($)	Credit ($)	Balance
Date		Item	Post. Ref	Debit ($)	Credit ($)	Debit ($)	Credit ($)
20Y4
March	31	Balance	✓			30,000
	31	Adjusting	26		22,500	7,500

Account: Prepaid Insurance Account no. 14
Date		Item	Post. Ref	Debit ($)	Credit ($)	Balance
Date		Item	Post. Ref	Debit ($)	Credit ($)	Debit ($)	Credit ($)
20Y4
March	31	Balance	✓			3,600
	31	Adjusting	26		1,800	1,800

Account: Equipment Account no. 16
Date		Item	Post. Ref	Debit ($)	Credit ($)	Balance
						Debit ($)	Credit ($)
20Y4
March	31	Balance	✓			110,000

Account: Accumulated Depreciation-Office equipment Account no. 17
Date		Item	Post. Ref	Debit ($)	Credit ($)	Balance
Date		Item	Post. Ref	Debit ($)	Credit ($)	Debit ($)	Credit ($)
20Y4
March	31	Balance	✓				25,000
	31	Adjusting	26		8,350		33,350

Account: Trucks Account no. 18
Date		Item	Post. Ref	Debit ($)	Credit ($)	Balance
						Debit ($)	Credit ($)
20Y4
March	31	Balance	✓			60,000

Account: Accumulated Depreciation- Truck Account no. 19
Date		Item	Post. Ref	Debit ($)	Credit ($)	Balance
Date		Item	Post. Ref	Debit ($)	Credit ($)	Debit ($)	Credit ($)
20Y4
March	31	Balance	✓				15,000
	31	Adjusting	26		6,200		21,200

Account: Accounts Payable Account no. 21
Date		Item	Post. Ref	Debit ($)	Credit ($)	Balance
						Debit ($)	Credit ($)
20Y4
March	31	Balance	✓				4,000

Account: Wages Payable Account no. 22
Date		Item	Post. Ref	Debit ($)	Credit ($)	Balance
						Debit ($)	Credit ($)
20Y4
March	31	Adjusting	26		600		600

Account: Common Stock Account no. 31
Date		Item	Post. Ref	Debit ($)	Credit ($)	Balance
						Debit ($)	Credit ($)
20Y4
March	31	Balance	✓ 1		26,000		26,000

Account: Retained Earnings Account no. 32
Date		Item	Post. Ref	Debit ($)	Credit ($)	Balance
Date		Item	Post. Ref	Debit ($)	Credit ($)	Debit ($)	Credit ($)
20Y4
March	31	Balance	✓				70,000
	31	Closing	27		51,150		121,150
	31	Closing	27	15,000			106,150

Account: Dividends Account no. 33
Date		Item	Post. Ref	Debit ($)	Credit ($)	Balance
Date		Item	Post. Ref	Debit ($)	Credit ($)	Debit ($)	Credit ($)
20Y4
March	31	Balance	✓ 1			15,000
	31	Closing	27		15,000

Account: Income Summary Account no...

Answer 6

2.

To determine

Enter the unadjusted trial balance on an end of period spreadsheet and complete the spread sheet.

Answer 7

3.

To determine

Prepare the adjusting entries and post it into the T-accounts.

Answer 8

4.

To determine

Prepare an adjusted trial balance as of March 31, 20Y4.

Answer 9

5.

To determine

Prepare an income statement, a statement of stockholders, equity and a balance sheet for the year ended March 31, 20Y4.

Answer 10

6.

To determine

Prepare the closing entries.

Answer 11

7.

To determine

Prepare a post-closing trial balance as of March 31, 20Y4.

Financial And Managerial Accounting

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Financial And Managerial Accounting

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