Plicta Motors is an automobile service center offering a full range of repair services for high performance cars.

Problem 1

Plicta Motors is an automobile service center offering a full range of repair services for high performance cars.  The following information is pertinent to adjusting entries that are needed for Plicta as of March 31, 20X5.  Plicta has a fiscal year ending on March 31 and only records adjusting entries at year end. 

 

Plicta has a large investment in repair equipment and maintains detailed asset records.  These records show that depreciation for fiscal “X5” is $123,400.

and so on…..

 

Problem 2

 

Timber Creek prepared the following adjusted trial balance on December 31, 20X3.  The company has completed preparation of financial statements and is now ready to prepare closing entries. 

(a)   Prepare the necessary closing entries.

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