journalize and post the closing entries income summary is account 33 in the chart of 638611

The unadjusted trial balance of Quick Repairs at October 31, 2008, the end of the current year, is shown below.

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

a. Supplies on hand at October 31 are $7,120.

b. Insurance premiums expired during year are $2,000.

c. Depreciation of equipment during year is $4,200.

d. Depreciation of trucks during year is $2,200.

e. Wages accrued but not paid at October 31 are $600.

Instructions

1. For each account listed in the trial balance, enter the balance in the appropriate Balance column of a four column account and place a check mark (??) in the Posting Reference column.

2. Optional: Enter the unadjusted trial balance on an end of period spreadsheet (work sheet) and complete the spreadsheet. Add the accounts listed in part (3) as needed.

3. Journalize and post the adjusting entries, inserting balances in the accounts affected. The following additional accounts from Quick Repair’s chart of accounts should be used:

Wages Payable, 22; Supplies Expense, 52; Depreciation Expense—Equipment, 54; Depreciation Expense—Trucks, 56; Insurance Expense, 57.

4. Prepare an adjusted trial balance.

5. Prepare an income statement, a statement of owner’s equity (no additional investments were made during the year), and a balance sheet.

6. Journalize and post the closing entries. (Income Summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry.

7. Prepare a post closing trial balance.