Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of
ID: 2337624 • Letter: M
Question
Mint Cleaning Inc. 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 Cash Accounts Receivable Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Common Stock Retained EarningS Sales Revenue Insurance Expense Salaries and Wages Expense Supplies Expense Debit Credit s 47 98 94 10 19 Totals $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, $6Explanation / Answer
Closing journal entry for the year ended Dec 31, Transaction General Journal Debit Credit 1 Insurance a/c Dr 2 To Prepaid Insurance 2 (Being Insurance expired $2) 2 Depreciation a/c Dr 1 To Accumulated Depreciation a/c 1 ( Being amount transferred to accumulated depreciation) Accumulated depreciation a/c Dr 1 To Equipments a/c 1 (Being depreciation charged on equipments) 3 Salaries and wages expense a/c Dr 4 To Salaries and Wages payable a/c 4 ( Being salaries and wages payable created) 4 Profit & Loss a/c Dr 6 To Provision for Income tax a/c 6