E4-16 through E4-18 (Algo) Recording Four Adjusting Journal Entries, Preparing an Adjusted Trial Balance, Reporting an Income Statement, Statement of Retained Earnings, Balance Sheet, Recording Closing Entries [LO 4-2, LO 4-3, LO 4-4, LO 4-5]

[The following information applies to the questions displayed below.]

Mint Cleaning Incorporated prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. (Assume amounts are reported in thousands of dollars.)

Account Titles	Debit	Credit
Cash	$ 47
Accounts Receivable	9
Prepaid Insurance	4
Equipment	98
Accumulated Depreciation		$ 0
Accounts Payable		9
Salaries and Wages Payable		0
Income Tax Payable		0
Common Stock		94
Retained Earnings		10
Sales Revenue		99
Insurance Expense	0
Salaries and Wages Expense	19
Supplies Expense	35
Income Tax Expense	0
Totals	$ 212	$ 212

Other data not yet recorded at December 31:

1. Insurance expired during the year, $2.
2. Depreciation expense for the year, $1.
3. Salaries and wages payable, $4.
4. Income tax expense, $6.

E4-16 (Algo) Part 2

Required:

1. 2-a. Post the beginning balances and adjusting entries to the following T-accounts.

2. 2-b. Prepare an adjusted trial balance as of December 31.

Complete this question by entering your answers in the tabs below. 24 26 Post the beginning balances and adjusting entries to the following T-accounts. (Enter your answers in thousands of dollars.) Cash Credit Account Recalvable Debit Beginning Balance Dabit Beginning Balance Creat Ending Balance Ending Bence Prepaid Insuranon Equipment Credit Credit Dabit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Aboumulstad Depreciation Accounts Payable Creat Credit Dabit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Bailaric and Wages Payable Debit Creat Income Tax Payable Debit Beginning Balance Credit Beginning Balance Ending Balance Ending Balance Common Stook Retained Earnings Credit Credit Debit Beginning Balance Debit Beginning Balance Ending Balance Ending Balanga Bale Ravond Bupplies Expanse Creat Dabit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Salaries and Wages Expence Credit Depreciation Expence Debit Beginning Balance Debit Beginning Balance Credit Ending Balance Ending Balance Insurance Expence Credit Income Tax Expense Debit Beginning Balance Dabit Beginning Balance Credit Ending Balance Ending Balance 2 Reg 28 > Req 2A Req 2B Prepare an adjusted trial balance as of December 31. (Enter your answers in thousands of dollars.) MINT CLEANING INCORPORATED Adjusted Trial Balance (in thousands of dollars) Account Titles Debit Credit Totals E4-16 through E4-18 (Algo) Recording Four Adjusting Journal Entries, Preparing an Adjusted Trial Balance, Reporting an Income Statement, Statement of Retained Earnings, Balance Sheet, Recording Closing Entries [LO 4-2, LO 4-3, LO 4-4, LO 4-5) [The following information applies to the questions displayed below.] Mint Cleaning Incorporated prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. (Assume amounts are reported in thousands of dollars.) Credit Debit $ 47 9 4 98 9 Account Titles Cash Accounts Receivable Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Income Tax Payable Common Stock Retained Earnings Sales Revenue Insurance Expense Salaries and Wages Expense Supplies Expense Income Tax Expense Totals a 94 10 99 19 35 $ 212 $ 212 Other data not yet recorded at December 31: a. Insurance expired during the year, $2. b. Depreciation expense for the year, $1. c. Salaries and wages payable, $4. d. Income tax expense, $6. E4-16 (Algo) Part 3 Required: 3. By what amount would net income have been understated or overstated had the adjusting journal entries not been recorded? (Enter your answers in thousands of dollars.) Net income by E4-17 (Algo) Part 1 Required: Using the adjusted balances, prepare an income statement for the year ended December 31. (Enter your answers in thousands of dollars.) MINT CLEANING INCORPORATED Income Statement (in thousands of dollars) E4-17 (Algo) Part 2 Required: Using the adjusted balances, prepare a statement of retained earnings for the year ended December 31. (Enter your answers in thousands of dollars.) MINT CLEANING INCORPORATED Statement of Retained Earnings (in thousands of dollars) Beginning Balance Ending Balance E4-17 (Algo) Part 3 Required: Using the adjusted balances, prepare a classified balance sheet for the year ended December 31. (Amounts to be deducted should be indicated by a minus sign. Enter your answers in thousands of dollars.) MINT CLEANING INCORPORATED Balance Sheet (in thousands of dollars) $ 0 $ 0 0 $ 0 $ 0 Journal entry worksheet Record the closing entry for the year ended December 31. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal