Recording Four Adjusting Entries and Completing the Trial Balance Worksheet

Red River Company prepared the following trial balance at the end of its first year of operations ending December 31, 2011. To simplify the case, the amounts given are in thousands of dollars.

Other data not yet recorded at December 31, 2011 include:

a. Insurance expired during 2011, $4.

b. Wages payable, $5.

c. Depreciation expense for 2011, $8.

d. Income tax expense, $9.

Required:

1. Prepare the adjusting entries for 2011.

2. Complete the trial balance Adjustments and Adjustedcolumns.

UNADJUSTEDADJUSTMENTS ADJUSTED Account Titles Debit Credit Debit Credit Debit Credit Cash 35 Accounts receivable 9. Prepaid insurance Machinery 80 Accumulated depreciation Accounts payable Wages payable Income taxes payable Contributed capital (4.000 shares) 73 Retained earnings 4 Revenues (not detailed) 84 Expenses (not detailed) 32 Totals 166 166