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Ledger Accounts, Adjusting Entries, Financial Statements, and Closing Entries; Optional End-of-Period Spreadsheet

The unadjusted trial balance of Recessive Interiors at January 31, 20Y2, the end of the year, follows:

Recessive Interiors Unadjusted Trial Balance January 31, 20Y2
	Account No.	Debit Balances		Credit Balances
Cash	11	13,100
Supplies	13	8,000
Prepaid Insurance	14	7,500
Equipment	16	113,000
Accumulated DepreciationEquipment	17			12,000
Trucks	18	90,000
Accumulated DepreciationTrucks	19			27,100
Accounts Payable	21			4,500
Common Stock	31			30,000
Retained Earnings	32			96,400
Dividends	33	3,000
Service Revenue	41			155,000
Wages Expense	51	72,000
Rent Expense	52	7,600
Truck Expense	53	5,350
Miscellaneous Expense	59	5,450
		325,000		325,000

The following additional accounts from Recessive Interiors' chart of accounts should be used: Wages Payable, 22; Depreciation Expense-Equipment, 54; Supplies Expense, 55; Depreciation Expense-Trucks, 56; Insurance Expense, 57.

The data needed to determine year-end adjustments are as follows:

1. Supplies on hand at January 31 are $2,850.
2. Insurance premiums expired during the year are $3,150.
3. Depreciation of equipment during the year is $5,250.
4. Depreciation of trucks during the year is $4,000.
5. Wages accrued but not paid at January 31 are $900.

Use the attached spreadsheet to complete parts 2, 3, and 6. Click on the Spreadsheet icon above to open and save the Excel file to your computer. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem.

Required:

1. For each account listed in the unadjusted trial balance, notice that the balance has been entered in the appropriate general ledger account balance column in the spreadsheet. Posting to the general ledger will take place in step 3 and step 6.

2. (Optional) In the attached spreadsheet, enter the adjusting entries and complete the worksheet.

3. Journalize the adjusting entries on page 26 of the journal. Then post to the appropriate accounts in the general ledger in the attached spreadsheet, inserting balances in the accounts affected. If an amount box does not require an entry, leave it blank.

Journal				PAGE 26
Date	Account	Post. Ref.	Debit	Credit
20Y2
a. Jan. 31
b. Jan. 31
c. Jan. 31
d. Jan. 31
e. Jan. 31

4. Prepare an adjusted trial balance. List the accounts in order by type: Assets, Liabilities, Capital, Dividends, Revenue and Expenses. If an amount box does not require an entry, leave it blank.

Recessive Interiors Adjusted Trial Balance January 31, 20Y2
	Debit Balances	Credit Balances

5. Prepare an income statement.

Recessive Interiors Income Statement For the Year Ended January 31, 20Y2
		$
Expenses:
	$
Total expenses
		$

Prepare a statement of stockholders equity. During the year ended January 31, 20Y2, additional common stock of $7,500 was issued. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign.

Recessive Interiors Statement of Stockholders Equity For the Year Ended January 31, 20Y2
	Common Stock	Retained Earnings	Total
	$	$	$
	$	$	$

Prepare a balance sheet.

Recessive Interiors Balance Sheet January 31, 20Y2
Assets				Liabilities
Current assets:				Current liabilities:
		$			$
				Total liabilities		$
Total current assets			$
Property, plant, and equipment:				Stockholders' Equity
	$				$
		$
	$
Total property, plant, and equipment				Total stockholders' equity
Total assets			$	Total liabilities and stockholders' equity		$

6. Journalize the closing entries on page 27 of the journal. Then post to the general ledger in the attached spreadsheet. If an amount box does not require an entry, leave it blank.

Journal				PAGE 27
Date	Account	Post. Ref.	Debit	Credit
Jan. 31
Jan. 31

7. Prepare a post-closing trial balance. List the accounts in order by type: Assets, Liabilities, Capital, Dividends, Revenue and Expenses. If an amount box does not require an entry, leave it blank.

Recessive Interiors Post-Closing Trial Balance January 31, 20Y2
	Debit Balances	Credit Balances

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