Question: Refer to E4-18. Red River Company
Refer to E4-18.
Red River Company prepared the following trial balance at the end of its first year of operations ending December 31, 2011. To simplify the case, the amounts given are in thousands of dollars.
Other data not yet recorded at December 31, 2011 include:
a. Insurance expired during 2011, $4.
b. Wages payable, $5.
c. Depreciation expense for 2011, $8.
d. Income tax expense, $9.
Required:
Using the adjusted balances in E4-18 , prepare an income statement, statement of stockholders’ equity, and balance sheet for 2011.
Transcribed Image Text:
UNADJUSTED ADJUSTMENTS ADJUSTED Account Titles Debit Credit Debit Credit Debit Credit Cash 35 Accounts receivable 9 Prepaid insurance 6 Machinery 80 Accumulated depreciation Accounts payable Wages payable 9 Income taxes payable Contributed capital (4,000 shares) Retained earnings Revenues (not detailed) 73 4 84 Expenses (not detailed) 32 Totals 166 166
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