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. Cash Account Titles Accounts receivable Prepaid insurance Machinery Accumulated depreciation UNADJUSTED Debit Credit 28 25 20 87 21 Accounts payable Wages payable Income taxes payable Common stock (4,000 shares) 4 Additional paid-in capital 67 Retained earnings 19 Revenues (not detailed) 122 Expenses (not detailed) 35 Totals 214 214 Other data not yet recorded at December 31 include a. Insurance expired during the current year, $14. b. Wages payable, $14. c. Depreciation expense for the current year, $16. d. Income tax expense, $13. Required: 1. Using the adjusted balances, prepare an income statement for the current year. 2. Using the adjusted balances, prepare statement of stockholders' equity for the current year. The balance in retained earnings represents dividends that were declared and paid in the current year. 3. Using the adjusted balances, prepare balance sheet for the current year.

Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries
Section: Chapter Questions
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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.
Cash
Account Titles
Accounts receivable
Prepaid insurance
Machinery
Accumulated depreciation
UNADJUSTED
Debit
Credit
28
25
20
87
21
Accounts payable
Wages payable
Income taxes payable
Common stock (4,000 shares)
4
Additional paid-in capital
67
Retained earnings
19
Revenues (not detailed)
122
Expenses (not detailed)
35
Totals
214
214
Other data not yet recorded at December 31 include
a. Insurance expired during the current year, $14.
b. Wages payable, $14.
c. Depreciation expense for the current year, $16.
d. Income tax expense, $13.
Required:
1. Using the adjusted balances, prepare an income statement for the current year.
2. Using the adjusted balances, prepare statement of stockholders' equity for the current year. The balance in retained earnings
represents dividends that were declared and paid in the current year.
3. Using the adjusted balances, prepare balance sheet for the current year.
Transcribed Image Text: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. Cash Account Titles Accounts receivable Prepaid insurance Machinery Accumulated depreciation UNADJUSTED Debit Credit 28 25 20 87 21 Accounts payable Wages payable Income taxes payable Common stock (4,000 shares) 4 Additional paid-in capital 67 Retained earnings 19 Revenues (not detailed) 122 Expenses (not detailed) 35 Totals 214 214 Other data not yet recorded at December 31 include a. Insurance expired during the current year, $14. b. Wages payable, $14. c. Depreciation expense for the current year, $16. d. Income tax expense, $13. Required: 1. Using the adjusted balances, prepare an income statement for the current year. 2. Using the adjusted balances, prepare statement of stockholders' equity for the current year. The balance in retained earnings represents dividends that were declared and paid in the current year. 3. Using the adjusted balances, prepare balance sheet for the current year.
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