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Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second...

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Accounting

Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second year of operations, ending December 31.

Account Titles Debit Credit
Cash $ 38
Accounts Receivable 9
Prepaid Insurance 6
Machinery 80
Accumulated Depreciation $ 0
Accounts Payable 9
Contributed Capital 76
Retained Earnings 4
Sales Revenue 80
Administrative Expenses 26
Wages Expense 10
Totals $ 169 $ 169

Other data not yet recorded at December 31 are as follows:

  1. Insurance expired during the year, $5.
  2. Depreciation expense for the year, $4.
  3. Wages payable, $7.
  4. Income tax expense, $9.

Required: 1. Prepare the adjusting journal entries for the year ended December 31.

a) Insurance expired during the year, $5.

b)Depreciation expense for the year, $4.

c)Wages payable, $7.

d)Income tax expense, $9

2. Using T-accounts, determine the adjusted balances in each account and prepare an adjusted trial balance as of December 31.

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