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.

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.

  

	UNADJUSTED
Account Titles	Debit		Credit
Cash	29
Accounts receivable	26
Prepaid insurance	21
Machinery	88
Accumulated depreciation
Accounts payable			22
Wages payable
Income taxes payable
Common stock (4,000 shares)			6
Additional paid-in capital			68
Retained earnings	20
Revenues (not detailed)			124
Expenses (not detailed)	36
Totals	220		220

Other data not yet recorded at December 31 include:

1. Insurance expired during current year, $11.
2. Wages payable, $15.
3. Depreciation expense for current year, $17.
4. Income tax expense, $5.

Required:

2. Using the adjusted balances, give the closing entry for current year.

 

Explanation:

2.
 

Expenses = $36 + $11 + $17 + $15 + $5 = 84