Accounts, Adjusting Entries, Financial Statements, and Closing Entries The data
ID: 2460275 • Letter: A
Question
Accounts, Adjusting Entries, Financial Statements, and Closing Entries
The data needed to determine year-end adjustments are as follows:
Laundry supplies on hand at June 30 are $3,600.
Insurance premiums expired during the year are $5,700.
Depreciation of laundry equipment during the year is $6,500.
Wages accrued but not paid at June 30 are $1,100.
Required:
1. The beginning account balances from the unadjusted trial balance, as of June 30th, have been entered in the T accounts in part 3 below. The T accounts will be used in parts 3 and 6.
2. (Optional.) On your own paper, enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet.
3. Journalize the adjusting entries. Then, post the entries in the T accounts below. Adjustments are identified by "Adj.", the new balances as "Adj. Bal." and closing entries as "Clos."
Laundry Supplies Expense
Laundry Supplies
Insurance Expense
Prepaid Insurance
Accumulated Depreciation
The T accounts below are used to complete the posting requirements for part 3 and 6.
4. Prepare an adjusted trial balance. If a box does not require an entry, leave it blank.
Cash
Laundry Supplies
Prepaid Insurance
Laundry Equipment
Accumulated Depreciation
Accounts Payable
Wages Payable
Laundry Revenue
Insurance Expense
Miscellaneous Expense
5. Prepare an income statement.
Prepare a statement of owner's equity (no additional investments were made during the year).
Prepare a balance sheet.
cash $______________
laundry supplies $ _______
prepaid $ __________
Accounts Payable $ _______
$ ________
6. Journalize the closing entries. For a compound transaction, if an amount box does not require an entry, leave it blank. Then post the entries to the T accounts in part 3 above.
7. Prepare a post-closing trial balance. If a box does not require an entry, leave it blank.
.
Date Account Debit Credit a.Laundry Supplies Expense
Laundry Supplies
b.Insurance Expense
Prepaid Insurance
c. Depreciation ExpenseAccumulated Depreciation
d. Wages Expense Wages PayableExplanation / Answer
Date Account Debit Credit a. Laundry Supplies Expense $17,900 Laundry Supplies (21500-3600) $17,900 b. Insurance Expense $5,700 Prepaid Insurance $5,700 c. Depreciation Expense $6,500 Accumulated Depreciation $6,500 d. Wages Expense $1,100 Wages Payable $1,100 The T accounts Cash 11,000 Laundry Supplies 21,500 A) Laundry expenses $17,900 end bal $3,600 Prepaid Insurance 9,600 b)Insurance Expense 5700 end bal $3,900 Laundry Equipment 232,600 Accumulated Depreciation 125,400 c) Depreciation exp 6500 end bal 131,900 Accounts Payable 11,800 Wages Payable d) wages expenses 1100 end bal 1100 Sophie Perez, Capital 105,600 Sophie Perez, Drawing 10,000 June 30 Bal.June 30 Adj. Income Summary Laundry Revenue June 30 Clos. 232,200 232,200 Wages Expense 125,200 .June 30 Clos. 126,300 June 30 Adj. 1100 June 30 Adj Bal 126,300 Rent Expense 40,000 June 30 Clos. 40,000 Utilities Expense 19,700 June 30 Clos. 19,700 Laundry Supplies Expense June 30 Adj. $17,900 June 30 Clos $17,900 Depreciation Expense June 30 Adj. 6500 .June 30 Clos. 6500 Insurance Expense June 30 Adj. 5700 June 30 Clos. 5700 Miscellaneous Expense 5,400 June 30 Clos. 5,400 ans 4 Adjusted Trail Balance Epicenter Laundry Adjusted Trial Balance 30-Jun-14 Debit Balances Credit Balances Cash $11,000 Laundry Supplies $3,600 Prepaid Insurance $3,900 Laundry Equipment 232600 Accumulated Depreciation 131,900 Accounts Payable 11800 Wages Payable 1100 Sophie Perez, Capital 105600 Sophie Perez, Drawing 10000 Laundry Revenue 232200 Wages expenses 126300 Rent Expense 40000 Utilities Expense 19700 Laundry Supplies Equipment 17900 Depreciation Expense 6500 Insurance Expense 5700 Miscellaneous Expense 5400 Total $482,600 $482,600 5. Prepare an income statement. Epicenter Laundry Income Statement For the Year Ended June 30, 2014 Laundry revenue 232200 Expenses: Wages expense 126300 Rent expense 40000 Utilities expense 19700 Laundry supplies expense 17900 Depreciation expense 6500 insuranceInsurance expense 5700 Miscellaneous expense 5400 Total Expenses 221500 Net income 10700 Prepare a statement of owner's equity (no additional investments were made during the year). Epicenter Laundry Statement of Owner's Equity For the Year Ended June 30, 2014 Sophie Perez, capital, July 1, 2013 $______ 105600 Net income for the yearNet loss for the year $ _______ 10700 Less withdrawals $ ______ -10000 Increase in owner's equity $ ______ 700 Sophie Perez, capital, July 1, 2014 $ _______ 106300 Prepare a balance sheet. Epicenter Laundry Balance Sheet 30-Jun-14 Assets Liabilities Current assets: Current liabilities: cash $11,000 Accounts Payable $ _______ 11800 laundry supplies $ $3,600 Wages payable 1100 Prepaid Insurance $3,900 Total liabilities 12900 Total current Assets $18,500 Owner's Equity Sophie Perez, capital 106300 Total current assets Property, plant, and equipment: Laundry equipment 232600 Less accumulated depreciation 131,900 Total property, plant, and equipment 100,700 Total assets $119,200 Total liabilities and owner's equity 119200 6. Journalize the closing entriesabove. Date Account Debit Credit Laundry Revenue 232200 Income Summary 232200 Close expenses Income Summary 221500 Wages Expense 126300 Rent Expense 40000 Utilities Expense 19700 Laundry Supplies Expense 17900 Depreciation Expense 6500 Insurance Expense 5700 Miscellaneous Expense 5400 Close income/loss Income Summary 10700 Sophie Perez, Capital 10700 Close drawing Sophie Perez, Capital 10000 Sophie Perez, Drawing 10000 Closing Trial bLance Debit Balances Credit Balances Cash $11,000 Laundry Supplies $3,600 Prepaid Insurance $3,900 Laundry Equipment $232,600 Accumulated Depreciation $131,900 Accounts Payable $11,800 Wages Payable $1,100 Sophie Perez, Capital 106300 Total $251,100 $251,100 If any doubt please comment. If satisfied you can rate