The unadjusted trial balance of Lakota Freight Co. at March 31, 2019, the end of the year,

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Question:

The unadjusted trial balance of Lakota Freight Co. at March 31, 2019, the end of the year, follows:

Lakota Freight Co.

UNADJUSTED TRIAL BALANCE March 31, 2019

ACCOUNT TITLE DEBIT CREDIT

1 Cash 12,000.00

2 Supplies 30,000.00

3 Prepaid Insurance 3,600.00

4 Equipment 110,000.00

5 Accumulated Depreciation-Equipment 25,000.00

6 Trucks 60,000.00

7 Accumulated Depreciation-Trucks 15,000.00

8 Accounts Payable 4,000.00

9 Kaya Tarango, Capital 96,000.00

10 Kaya Tarango, Drawing 15,000.00

11 Service Revenue 160,000.00

12 Wages Expense 45,000.00

13 Rent Expense 10,600.00

14 Truck Expense 9,000.00

15 Miscellaneous Expense 4,800.00

16 Totals 300,000.00 300,000.00

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

• Supplies on hand at March 31 are $7,500.

• Insurance premiums expired during the year are $1,800.

• Depreciation of equipment during the year is $8,350.

• Depreciation of trucks during the year is $6,200.

• Wages accrued but not paid at March 31 are $600.

Required:

1. A. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the adjusting and closing entries from the journal to a ledger of four-column accounts. Be sure to save your work in Excel. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem.

B. For each account listed in the unadjusted trial balance, enter the balance in the appropriate Balance column of a four-column account and enter ’X’ in the Post. Ref. column. Enter Balance in the ITEM column. 2. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the worksheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded.

3. A. Journalize the adjusting entries on Page 26 of the journal. Adjusting entries are recorded on March 31. Refer to the Chart of Accounts for account titles. B. Post the adjusting transactions from the journal to a ledger of four-column accounts, inserting balances in the accounts affected. Add the appropriate posting reference to the journal.

4. Prepare an adjusted trial balance.

5. If you completed the end-of-period work sheet, use the adjusted trial balance figures to prepare an income statement, a statement of owner’s equity, and a balance sheet. If you didn’t complete the end-of-period work sheet, use the ledger (the Excel spreadsheet) to prepare an income statement, a statement of owner’s equity, and a balance sheet.*

6. A. Journalize the closing entries on page 27 of the journal. Refer to the Chart of Accounts for account titles. (Note: Complete the adjusted trial balance, the income statement, the statement of owner’s equity, and the balance sheet BEFORE completing part 6. A.) B. Post the closing entries to the ledger of four-column accounts, inserting balances in the accounts affected. Add the appropriate posting reference to the journal.

7. Prepare a post-closing trial balance