The trial balance of the Clean Laundry on June 30, 2020 end of the current fiscal year and the data needed for year-end adjustment are presented below: CLEAN LAUNDRY Trial Balance June 30, 2020 33,000 50,000 Cash on Hand Accounts Receivable Allowance for Doubtful Accounts P 5,000 Notes Receivable 30,000 3,600 90,000 Unexpired Insurance Laundry Equipment Accumulated Depreciation – Laundry Equipment Notes Payable Carrie Clean, Capital Carrie Clean, Drawing Laundry Income Salaries Expense Laundry Supplies Expense 9,000 6,000 115,000 6,000 120,000 11,000 15,000 2,500 7,000 5,000 1,900 P 255,000 Taxes and Licenses Light and Water Expense Rent Expense Interest Expense Total P 255,000 Data for adjustments: 1. Laundry supplies on hand amount to P 3,000. 2. 15% of the outstanding accounts receivable are estimated to be uncollectible. 3. The estimated life of the laundry equipment is 10 years with no scrap value. 4. The unexpired insurance represents the annual premium paid on Feb. 1, 2020 5. Light and water expense unpaid on June 30 amounted to P 2,000. 6. Interested accrued on notes payable amounted to P 60.

The trial balance of the Clean Laundry on June 30, 2020 end of the current fiscal year and the data needed for year-end adjustment are presented below: CLEAN LAUNDRY Trial Balance June 30, 2020 33,000 50,000 Cash on Hand Accounts Receivable Allowance for Doubtful Accounts P 5,000 Notes Receivable 30,000 3,600 90,000 Unexpired Insurance Laundry Equipment Accumulated Depreciation – Laundry Equipment Notes Payable Carrie Clean, Capital Carrie Clean, Drawing Laundry Income Salaries Expense Laundry Supplies Expense 9,000 6,000 115,000 6,000 120,000 11,000 15,000 2,500 7,000 5,000 1,900 P 255,000 Taxes and Licenses Light and Water Expense Rent Expense Interest Expense Total P 255,000 Data for adjustments: 1. Laundry supplies on hand amount to P 3,000. 2. 15% of the outstanding accounts receivable are estimated to be uncollectible. 3. The estimated life of the laundry equipment is 10 years with no scrap value. 4. The unexpired insurance represents the annual premium paid on Feb. 1, 2020 5. Light and water expense unpaid on June 30 amounted to P 2,000. 6. Interested accrued on notes payable amounted to P 60.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter3: Review Of A Company's Accounting System

Section: Chapter Questions

Problem 12E: Worksheet, Including Inventory Surian Motors Company prepared a trial balance on the following...

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The unadjusted trial balance of Recessive Interiors at January 31, 2019, the end of the year, follows: The data needed to determine year-end adjustments are as follows: a. Supplies on hand at January 31 are 2,850. b. Insurance premiums expired during the year are 3,150. c. Depreciation of equipment during the year is 5,250. d. Depreciation of trucks during the year is 4,000. e. Wages accrued but not paid at January 31 are 900. Instructions 1. For each account listed in the unadjusted trial balance, enter the balance in the appropriate Balance column of a four-column account and place a check mark () in the Posting Reference column. 2. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Add the accounts listed in part (3) as needed. 3. Journalize and post the adjusting entries, inserting balances in the accounts affected. Record the adjusting entries on Page 26 of the journal. The following additional accounts from Recessive Interiors chart of accounts should be used: Wages Payable, 22; Depreciation ExpenseEquipment, 54; Supplies Expense, 55; Depreciation ExpenseTrucks, 56; Insurance Expense, 57. 4. Prepare an adjusted trial balance. 5. Prepare an income statement, a statement of owners equity (no additional investments were made during the year), and a balance sheet. 6. Journalize and post the closing entries. Record the closing entries on Page 27 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. 7. Prepare a post-closing trial balance.
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