Refer to Problem 4-6A. Before completing the steps, enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet. Add the accounts listed in instruction 2 as needed. Complete the remaining steps.
In problem
The unadjusted trial balance of Loose Leaf Co. at December 31, 2015, is shown below.
The data needed to determine year-end adjustments are as follows:
a. Supplies on hand at December 31 are $1,500.
b. Insurance premiums expired during the year are $2,500.
c. The equipment life is estimated at 23 years.
d. The trucks have a useful life of three years.
e. Wages accrued but not paid at December 31 are $750.

Instructions
1. For each account listed in the unadjusted trial balance, enter the balance in the appropriate Balance column of a three-column account and place a check mark (œ”) in the Posting Reference column.
2. Journalize and post the adjusting entries, inserting balances in the accounts affected.
The following additional accounts from Loose Leaf€™s chart of accounts should be used: Wages Payable, 2020; Supplies Expense, 5020; Depreciation Expense, 5040; Insurance Expense, 5070.
3. Prepare an adjusted trial balance.
4. Prepare an income statement, a statement of owner€™s equity (no additional investments were made during the year), and a balance sheet.
5. Journalize and post the closing entries. (Income Summary is account #3030 in the chart of accounts.) Indicate closed accounts by inserting a line in the balance column opposite the closing entry.
6. Prepare a post-closing trial balance.

Transcribed Image Text:

Loose Leaf Co. Unadjusted Trial Balance December 31, 2015 Debit Balances Credit Balances 1010 Cash 1030 Supplies 1040 Prepaid Insurance 1060 Equipment 1070 Accumulated Depreciation-Equipment 1080 Trucks 1090 Accumulated Depreciation Trucks 2010 Accounts Payable 3010 Reed Barmack, Capital 3020 Reed Barmack, Withdrawals 4010 Service Revenue 5010 Wages Expense 5030 Rent Expense 5050 Truck Expense 5090 Miscellaneous Expense 1,825 4,820 7,500 108,100 12,050 9,300 1,000 12,015 51,185 8 2,500 120,950 48,010 7,600 5,350 2,195 197,200 197,200