Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second year of operations, ending December 31, 2014. To simplify this exercise, the amounts given in the unadjusted trial balance are in thousands of dollars.

Other data not yet recorded at December 31, 2014:
a. Insurance expired during 2014, $5.
b. Depreciation expense for 2014, $4.
c. Wages payable, $7.
d. Income tax expense, $9.
Required
1. Prepare the adjusting journal entries for 2014.
2. Using T-accounts, determine the adjusted balances in each account and prepare an adjusted trial balance as of December 31, 2014?

Transcribed Image Text:

Debit Account Titles Credit $ 38 Cash Accounts Receivable Prepaid Insurance Machinery 80 Accumulated Depreciation Accounts Payable Contributed Capital 76 Retained Earnings Sales Revenue 80 Administrative Expenses 26 Wages Expense 10 $169 $169 Totals