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

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Accounting

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 12
Accounts receivable 9
Prepaid insurance 4
Machinery 71
Accumulated depreciation
Accounts payable 5
Wages payable
Income taxes payable
Common stock (6,000 shares) 6
Additional paid-in capital 51
Retained earnings 3
Revenues (not detailed) 56
Expenses (not detailed) 19
Totals 118 118

Other data not yet recorded at December 31 include

  1. Insurance expired during the current year, $2.
  2. Wages payable, $3.
  3. Depreciation expense for the current year, $5.
  4. Income tax expense, $6.

Required:

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.

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