Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second year of
Question:
Other data not yet recorded at December 31, 2013:
a. Insurance expired during 2013, $5.
b. Depreciation expense for 2013, $4.
c. Wages payable, $7.
d. Income tax expense, $9.
Required:
1. Prepare the adjusting journal entries for 2013.
2. Using T-accounts, determine the adjusted balances in each account and prepare an adjusted trial balance as of December 31, 2013.
3. By what amount would net income have been understated or overstated had the adjusting journal entries not been recorded?
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Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025372
4th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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