Green Valley Company prepared the following trial balance at the end of its first year of...

Green Valley Company prepared the following trial balance at the end of its first year of operations ending December 31. To simplify the case, the amounts given are in thousands of dollars.

	UNADJUSTED
Account Titles	Debit	Credit
Cash	22
Accounts receivable	19
Prepaid insurance	14
Machinery	81
Accumulated depreciation
Accounts payable		15
Wages payable
Income taxes payable
Common stock (4,000 shares)		4
Additional paid-in capital		61
Retained earnings	13
Revenues (not detailed)		98
Expenses (not detailed)	29
Totals	178	178

Other data not yet recorded at December 31 include

Insurance expired during the current year, $12.
Wages payable, $13.
Depreciation expense for the current year, $15.
Income tax expense, $7
1. Prepare the adjusting entries for the current year.
2. Complete the trial balance Adjustments and Adjusted columns. The “Ref.” column is for the reference letter of the adjusting entry effect.

Complete the trial balance Adjustments and Adjusted columns. The “Ref.” column is for the reference letter of the adjusting entry effect. (For revenues and expenses enter the total amount of adjustments in the adjusted column. Enter your answers in thousands.)

GREEN VALLEY COMPANY
Trial Balance
December 31, Current Year
	Unadjusted		Adjustments			Adjusted
Account Titles	Debit	Credit	Ref.	Debit	Credit	Debit	Credit
Cash	22					22
Accounts receivable	19					19
Prepaid insurance	14				13	1
Machinery	81					81
Accumulated depreciation					15		15
Accounts payable		15					15
Wages payable					13		13
Income taxes payable					7		7
Common stock		4					4
Additional paid-in capital		61					61
Retained earnings	13					13
Revenues (not detailed)		98					98
Expenses (not detailed)


	29			18		47
Totals	178	178		18	48	183	213

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ekkarill92 answered 1 year ago

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