Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of
ID: 2337627 • 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
In thousands of dollars
Unadjusted Balances
Adjusting entries
Adjusted Trial Balance [Answer]
Debit
Credit
Debit
Credit
Debit
Credit
Cash
$ 47.00
$ 47.00
Accounts Receivables
$ 9.00
$ 9.00
Prepaid Insurance
$ 4.00
$ 2.00
$ 2.00
Equipment
$ 98.00
$ 98.00
Accumulated Depreciation-Equipment
$ -
$ 1.00
$ 1.00
Accounts payable
$ 9.00
$ 9.00
Common stock
$ 94.00
$ 94.00
Retained earnings
$ 10.00
$ 10.00
Sales revenue
$ 99.00
$ 99.00
Insurance Expense
$ -
$ 2.00
$ 2.00
Salaries and Wages payable
$ 4.00
$ 4.00
Salaries and wages expense
$ 19.00
$ 4.00
$ 23.00
Supplies expense
$ 35.00
$ 35.00
Income taxes payable
$ 6.00
$ 6.00
income tac expense
$ 6.00
$ 6.00
Depreciation expense-Equipment
$ 1.00
$ 1.00
TOTAL
$ 212.00
$ 212.00
$ 13.00
$ 13.00
$ 223.00
$ 223.00
Income Statement
(In thousands of Dollars)
Sales revenue
$ 99.00
Less Expenses
Insurance Expense
$ 2.00
Salaries and wages expense
$ 23.00
Supplies expense
$ 35.00
Depreciation expense-Equipment
$ 1.00
Income before taxes
$ 38.00
Income tax expense
$ 6.00
Income after tax
$ 32.00
MINT CLEANING INC.
Statement of retained earnings
For year ended December 31
(In thousands of Dollars)
Beginning balance
$ 10.00
Add: Net income
$ 32.00
Add: Dividends
$ 0.00
Ending Balance
$ 42.00
Unadjusted Balances
Adjusting entries
Adjusted Trial Balance [Answer]
Debit
Credit
Debit
Credit
Debit
Credit
Cash
$ 47.00
$ 47.00
Accounts Receivables
$ 9.00
$ 9.00
Prepaid Insurance
$ 4.00
$ 2.00
$ 2.00
Equipment
$ 98.00
$ 98.00
Accumulated Depreciation-Equipment
$ -
$ 1.00
$ 1.00
Accounts payable
$ 9.00
$ 9.00
Common stock
$ 94.00
$ 94.00
Retained earnings
$ 10.00
$ 10.00
Sales revenue
$ 99.00
$ 99.00
Insurance Expense
$ -
$ 2.00
$ 2.00
Salaries and Wages payable
$ 4.00
$ 4.00
Salaries and wages expense
$ 19.00
$ 4.00
$ 23.00
Supplies expense
$ 35.00
$ 35.00
Income taxes payable
$ 6.00
$ 6.00
income tac expense
$ 6.00
$ 6.00
Depreciation expense-Equipment
$ 1.00
$ 1.00
TOTAL
$ 212.00
$ 212.00
$ 13.00
$ 13.00
$ 223.00
$ 223.00