T accounts, adjusting entries, financial statements and closing entries; optiona
ID: 2509128 • Letter: T
Question
T accounts, adjusting entries, financial statements and closing entries; optional end-of-period spreadsheet (work sheet) The unadjusted trial balance of La Mesa Laundry at August 31, 2014, the end of the cur- rent fiscal year, is shown below. La Mesa Laundry Unadjusted Trial Balance August 31, 2014 Debit Balances Credit Balances Cash Laundry Supplies... 9,000 6,000 180,800 Laundry Equipment.... 49,200 7,800 2400 95,000 248,000 Bobbi Downey, Drawing Laundry Revenue. Wages Expense Rent Expense Utilities Expense.. Miscellaneous Expense . . .. 135,800 16,000 400,000 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. 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 1. Summary 2. (Optional.) Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) 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 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 by "Clos. 7. Prepare a post-closing trial balance.Explanation / Answer
1) adjustment entries: Debit credit $ 31-Aug-14 wages expenses 2200 Wages payable 2200 31-Aug-14 depreciation expenses 8150 Acc. Dep.-Equip 8150 31-Aug-14 Supplies expense 7000 Supplies 7000 31-Aug-14 Insurance expense 5300 Prepaid Insurance 5300 2)T-Accounts: DEBIT AMOUNT $ CREDIT AMOUNT $ wages account: OB 135800 CB 138000 wages payable 2200 wages payable account: Wages expense 2200 Depreciation exp. Account: Acc. Dep 8150 Acc. Dep. Account: CB 57350 OB 49200 Depre exp 8150 Supplies exp account: Supplies 7000 Supplies account: OB 9000 supplies expense 7000 CB 2000 Insurance exp account: Prepaid insurance 5300 Prepaid Insurance account: OB 6000 Insu exp 5300 CB 700 3) ADJUSTED TRIAL BALANCE : debit $ credit $ Cash 3800 L Supplies 2000 P Insurance 700 L Equipment 180800 Acc. Dep. 57350 AP 7800 WP 2200 Bobbi D, Capital 95000 Bobbi D, Drawing 2400 L Revenue 248000 Wages exp 138000 rent exp 43200 utilities exp 16000 deprec exp 8150 supplies exp 7000 insurance exp 5300 miscel exp 3000 TOTAL 410350 410350 4) Income Statement account: L Revenue 248000 Wages exp 138000 rent exp 43200 utilities exp 16000 deprec exp 8150 supplies exp 7000 insurance exp 5300 miscel exp 3000 total expense 220650 Net Income 27350 5) Statement of Owner's Equity: Capital 95000 Less: drawing -2400 add: Net Profit 27350 closing balance 119950 6) BALANCE SHEET : Assets: Amount $ Cash 3800 Supplies 2000 P. Insurance 700 Current Assets 6500 L Equipment 180800 Acc Dep. -57350 total assets 129950 Liabilities: Amount $ AP 7800 WP 2200 owner's equity 119950 total liabilities 129950
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.