he unadjusted trial balance of Lakota Freight Co. at March 31, 2016, the end of

Question

he unadjusted trial balance of Lakota Freight Co. at March 31, 2016, the end of the year, follows: Lakota Freight Co. UNADJUSTED TRIAL BALANCE March 31, 2016 ACCOUNT TITLE DEBIT CREDIT 1 Cash 12,000.00 2 Supplies 30,000.00 3 Prepaid Insurance 3,600.00 4 Equipment 110,000.00 5 Accumulated Depreciation-Equipment 25,000.00 6 Trucks 60,000.00 7 Accumulated Depreciation-Trucks 15,000.00 8 Accounts Payable 4,000.00 9 Kaya Tarango, Capital 96,000.00 10 Kaya Tarango, Drawing 15,000.00 11 Service Revenue 160,000.00 12 Wages Expense 45,000.00 13 Rent Expense 10,600.00 14 Truck Expense 9,000.00 15 Miscellaneous Expense 4,800.00 16 Totals 300,000.00 300,000.00 The data needed to determine year-end adjustments are as follows: • Supplies on hand at March 31 are $7,500. • Insurance premiums expired during year are $1,800. • Depreciation of equipment during year is $8,350. • Depreciation of trucks during year is $6,200. • Wages accrued but not paid at March 31 are $600. 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. Prepare an income statement, a statement of owner’s equity, and a balance sheet.* 6. a. Journalize the closing entries on page 27 of the journal. b. Post the closing entries to the ledger, inserting balances in the accounts affected. If the account balance is zero (0), enter a zero (0) in the account's normal balance column. If no entry is required in a cell, leave it blank. 7. Prepare a post-closing trial balance. * Be sure to read the instructions for each financial statement carefully.

Explanation / Answer

Adjusting entries Unadjusted Trial balance Account title Dr Cr Ref Dr Cr Supplies Expense 22500 Cash 12000 Supplies 22500 Supplies 30000 Prepaid Insurance 3600 Insurance Expense 1800 Equipment 110000 Prepaid Insureance 1800 Accumulated Depreciation-Equipment 25000 Trucks 60000 Depriciation-Equipment 8350 Accumulated Depreciation-Trucks 15000 Depreciation- Truck 6200 accounts Payable 4000 Accumulated Depreciation-Equipment 8350 Kaya, capital 96000 Accumulated Depreciation-Trucks 6200 Drawings 15000 Service revenue 160000 Wages Expenses 600 Wages Expenses 45000 Wages Payable 600 Rent expenses 10600 Truck expenses 9000 Miscelleneous Expenses 4800 Total 300000 300000 Adjusted Trial Balance Income Statement Ref Dr Cr Service revenue 160000 Cash 12000 Wages Expenses 45600 Supplies 7500 Rent expenses 10600 Prepaid Insurance 1800 Truck expenses 9000 Equipment 110000 Depriciation-Equipment 8350 Accumulated Depreciation-Equipment 33350 Depreciation- Truck 6200 Trucks 60000 Insurance Expense 1800 Accumulated Depreciation-Trucks 21200 Supplies expense 22500 accounts Payable 4000 Miscelleneous Expenses 4800 108850 Wages payable 600 Income transferred to Capital 51150 Kaya, capital 96000 Drawings 15000 Balance Sheet Service revenue 160000 Assets Wages Expenses 45600 Cash 12000 Rent expenses 10600 Supplies 7500 Truck expenses 9000 Prepaid Insurance 1800 Depriciation-Equipment 8350 Equipment 110000 Depreciation- Truck 6200 Accumulated Depreciation-Equipment -33350 Insurance Expense 1800 Trucks 60000 Supplies expense 22500 Accumulated Depreciation-Trucks -21200 Miscelleneous Expenses 4800 Total 136750 Total 315150 315150 Liabiliries accounts Payable 4000 Statement of owners equity Wages payable 600 Kaya, capital 96000 owners equity Drawings -15000 Kaya, capital 96000 Net Income 51150 Drawings -15000 Total 132150 Net Income 51150 Total 136750

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