Question: The unadjusted trial balance of Fix It Co at December 31

The unadjusted trial balance of Fix-It Co. at December 31, 2015, the end of the current year, is shown below.
The data needed to determine year-end adjustments are as follows:
a. Supplies on hand at December 31 are $4,000.
b. Insurance premiums expired during year are $2,000.
c. The equipment has a life of 20 years.
d. The trucks have a useful life of 5 years.
e. Wages accrued but not paid at December 31 are $450.
1. For each account listed in the trial balance, enter the balance in the appropriate Balance column of a three-column account and place a check mark (✔) in the Posting Reference column.
2. Journalize and post the adjusting entries, inserting balances in the accounts affected. The following additional accounts from Fix-It’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.

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  • CreatedSeptember 15, 2015
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