E$4-17($Algo$)$ Recording Four Adjusting Entries, Completing a Trial Balance, Preparing Financial

Statements and Recording Closing Entries LO$4-1,4-2,4-4$

Cayuga Ltd$.$ prepared the following trial balance at the end of its first year of operations ended December $31.$ To simplify the case, the

amounts given are in thousands of dollars. Other data not yet recorded at December $31$ are as follows:

a$.$ Insurance expired during the year, $$6.$

b$.$ Depreciation expense for the year, $$6.$

c$.$ Wages payable, $$11.$

d$.$ Income tax expense, $$16.$

Required:

Prepare the adjusting entries for the year. $($Enter your answers in thousands of dollars. If no entry is required for a

transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$Show the effects of the adjusting entries on net earnings and cash. $($Enter your answers in thousands of dollars. Select "None" if there is no effect.$)$

$\backslash$table$[[$Transaction$,,Ea,$nings,,Effect on Cash$],[$a$.,$Decrease,by$,$$$,6,$None$],[$b$.,$Decrease,by$,$$$,6,$None$],[$c$.,$Decrease,by$,$$$,11,$None$],[$d$.,$Decrease,by$,$$$,16,$None$]]$

Complete the trial balance Adjustments and Adjusted columns. $($For revenues and expenses enter the total amount of adjustments in the adjustment column. Enter your answers in thousands of dollars.$)$

$\backslash$table$[[$CAYUGA LTD$.],[$Trial Balance$],[$As at December $31],[($in thousands of dollars$)],[,$Unadjusted,Adjustments,Adjusted$],[$Account Titles,Debit,Credit,Debit,Credit,Debit,Credit$],[$Cash$,$$$,45,,,,$$$,45,],[$Accounts receivable,$16,,,,16,],[$Prepaid insurance,$8,,,6,2,],[$Machinery$,120,,,,120,],[$Accumulated depreciation,,$$,12,,6,,$$$,18$