The unadjusted trial balance of Lakota Freight Co. at March 31, 20Y4, the end of the year, follows: Lakota Freight Co.
UNADJUSTED TRIAL BALANCE
March 31, 20Y4
ACCOUNT TITLE DEBIT CREDIT
1 Cash 10,000.00
2 Supplies 32,000.00
3 Prepaid Insurance 4,800.00
4 Equipment 100,000.00
5 Accumulated Depreciation-Equipment 25,000.00
6 Trucks 50,000.00
7 Accumulated Depreciation-Trucks 15,000.00
8 Accounts Payable 5,000.00
9 Common Stock 27,000.00
10 Retained Earnings 20,100.00
11 Dividends 15,000.00
12 Service Revenue 190,000.00
13 Wages Expense 46,000.00
14 Rent Expense 10,500.00
15 Truck Expense 9,000.00
16 Miscellaneous Expense 4,800.00
17 Totals 282,100.00 282,100.00
The data needed to determine year-end adjustments are as follows:
A. Supplies on hand at March 31 are $7,000.
B. Insurance premiums expired during year are $1,800.
C. Depreciation of equipment during year is $8,550.
D. Depreciation of trucks during year is $6,000.
E. Wages accrued but not paid at March 31 are $500.
Required:
1. For each account listed in the trial balance, enter the balance in the appropriate Balance column of a four-column account and select the check mark in the Post. Ref. column.
2. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the work sheet.
3.
a. Journalize the adjusting entries on Page 26 of the journal. Adjusting entries are recorded on March 31.
b. Post the adjusting entries to the ledger, inserting balances in the accounts affected.
4. Prepare an adjusted trial balance.
5.
a. Prepare an income statement for the year ended March 31, 20Y4.
b. Prepare a statement of stockholders’ equity for the year ended March 31, 20Y4, additional common stock of $7,000 was issued.
c. Prepare a balance sheet as of March 31, 20Y4.
6.
a. Journalize the closing entries on page 27 of the journal.
b. Post the closing entries, inserting balances in the accounts affected.
7. Prepare a post-closing trial balance.