Question: The unadjusted trial balance of Loose Leaf Co at December

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 (✔) 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.

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  • CreatedSeptember 15, 2015
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