The unadjusted trial balance of Reliable Repairs at December 31, 2008, the end of the current year, is shown at the top of the next page. The data needed to determine year-end adjustments are as follows:

a. Supplies on hand at December 31 are $6,500.

b. Insurance premiums expired during the year are $2,500.

c. Depreciation of equipment during the year is $4,800.

d. Depreciation of trucks during the year is $3,500.

e. Wages accrued but not paid at December 31 are $1,000.

Instructions
1. For each account listed in the unadjusted trial balance, enter the balance in the appropriate Balance column of a four-column account and place a check mark (() in the Posting Reference column.
2. Optional: Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet. Add the accounts listed in part (3) as needed.
3. Journalize and post the adjusting entries, inserting balances in the accounts affected. The following additional accounts from Reliable's chart of accounts should be used: Wages Payable, 22; Supplies Expense, 52; Depreciation Expense-Equipment, 54; Depreciation Expense- Trucks, 56; Insurance Expense, 57.
4. Prepare an adjusted trial balance.
5. Prepare an income statement, a statement of owner's equity (no additional investments were made during the year), and a balance sheet.
6. Journalize and post the closing entries. (Income Summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry.
7. Prepare a post-closing trialbalance.

Transcribed Image Text:

Reliable Repairs Unadjusted Trial Balance December 31, 2008 Debit Balances Credit Balances 11 Cash 13 Supplies .. . 14 Prepaid Insurance. _...10,820 7,500 54,200 12,050 18 Trucks 50,000 27,100 12,015 32,885 32 Lee Mendoza, Drawing 41 Service Revenue... 51 Wages Expense... 53 Rent Expense 55 Truck Expense. 59 Miscellaneous Expense .. 5,000 90,950 . 28,010 8,100 2,195 175,000 175,000