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T accounts, adjusting entries, financial statements, and closing entries; optional end-of-period spreadsheet The unadjusted trial balance of La Mesa Laundry at August 31, 2019, the end of the fiscal year, follows: La Mesa Laundry Unadjusted Trial Balance August 31,2019 Debit Balances Credit Balances Cash 3,800 Laundry Supplies 9,000 Prepaid Insurance 6,000 Laundry Equipment 180,800 Accumulated Depreciation 49,200 Accounts Payable 7,800 Bobbi Downey. Capital 95,000 Bobbi Downey. Drawing 2,400 Laundry Revenue 248,000 Wages Expense 135,800 Rent Expense 43,200 Utilities Expense 16,000 Miscellaneous Expense 3,000 400,000 400,000 The data needed to determine year-end adjustments are as follows: a. Wages accrued but not paid at August 31 are $2,200. b. Depreciation of equipment during the year is $8,150. c. Laundry supplies on hand at August 31 are $2,000. d. Insurance premiums expired during the year are $5,300. Instructions 1. For each account listed in the unadjusted trial balance, enter the balance in a T account. Identity the balance as "Aug. 31 Bal." In addition, add T accounts for Wages Payable, Depreciation Expense, Laundry Supplies Expense, and Insurance Expense. 2. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Add the accounts listed in part (1) as needed. 3. Journalize and post the adjusting entries. Identity the adjustments as "Adj." and the new balances as "Adj. Bal." 4. Prepare an adjusted trial balance. 5. Prepare an income statement, a statement of owner's equity (no additional investments were made during the year), and a balance sheet. 6. Journalize and post the closing entries. Identify the closing entries as "Clos." 7. Prepare a post-closing trial balance.

BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 4, Problem 4.3BPR
Textbook Problem

T accounts, adjusting entries, financial statements, and closing entries; optional end-of-period spreadsheet

The unadjusted trial balance of La Mesa Laundry at August 31, 2019, the end of the fiscal year, follows:

La Mesa Laundry

Unadjusted Trial Balance

August 31,2019

 

Debit

Balances

Credit Balances
Cash 3,800  
Laundry Supplies 9,000  
Prepaid Insurance 6,000  
Laundry Equipment 180,800  
Accumulated Depreciation   49,200
Accounts Payable   7,800
Bobbi Downey. Capital   95,000
Bobbi Downey. Drawing 2,400  
Laundry Revenue   248,000
Wages Expense 135,800  
Rent Expense 43,200  
Utilities Expense 16,000  
Miscellaneous Expense 3,000
400,000 400,000

The data needed to determine year-end adjustments are as follows:

a.    Wages accrued but not paid at August 31 are $2,200.

b.    Depreciation of equipment during the year is $8,150.

c.    Laundry supplies on hand at August 31 are $2,000.

d.    Insurance premiums expired during the year are $5,300.

Instructions

1.    For each account listed in the unadjusted trial balance, enter the balance in a T account. Identity the balance as "Aug. 31 Bal." In addition, add T accounts for Wages Payable, Depreciation Expense, Laundry Supplies Expense, and Insurance Expense.

2.    (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Add the accounts listed in part (1) as needed.

3.    Journalize and post the adjusting entries. Identity the adjustments as "Adj." and the new balances as "Adj. Bal."

4.    Prepare an adjusted trial balance.

5.    Prepare an income statement, a statement of owner's equity (no additional investments were made during the year), and a balance sheet.

6.    Journalize and post the closing entries. Identify the closing entries as "Clos."

7.    Prepare a post-closing trial balance.

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Chapter 4 Solutions

Accounting
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