FINANCIAL AND MANAGERIAL ACCOUNTING
13th Edition
ISBN: 9781337816045
Author: WARREN
Publisher: CENGAGE L
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Textbook Question
Chapter 4, Problem 4.3BPR
T accounts,
The unadjusted
La Mesa Laundry Unadjusted Trial Balance August 31,2016 |
||
Debit Balances | Credit Balances | |
Cash........................... | 3,800 | |
Laundry Supplies............... | 9,000 | |
Prepaid Insurance............... | 6,000 | |
Laundry Equipment............. | 180,800 | |
49,200 | ||
Accounts Payable............... | 7,800 | |
Common Stock................. | 15,000 | |
80,000 | ||
Dividends…..................... | 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. Identify the balance as “Aug. 31 Bal.” In addition, add T accounts for Wages Payable, Depreciation Expense, Laundry Supplies Expense, Insurance Expense, and Income Summary.
- 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. Identify the adjustments by “Adj." and the new balances as “Adj. BAL."
- 4. Prepare an adjusted trial balance.
- 5. Prepare an income statement, a retained earnings statement, and a balance sheet.
- 6. Journalize and
post the closing entries. Identify the closing entries by “Clos." - 7. Prepare a post-closing trial balance.
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Question content area top right
Part 1
Requirement
Prepare the journal entries to record the following transactions that occurred during the current year. Prepare a schedule for both accounts receivable and the allowance for uncollectible accounts that shows the beginning balances, the various items that change the beginning balance, and the ending balance.
Question content area bottom
Part 1
Prepare the journal entries to record the following transactions that occurred during the current year. (Record debits first, then credits. Exclude explanations from any journal…
Chapter 4 Solutions
FINANCIAL AND MANAGERIAL ACCOUNTING
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