Adjusting entries from trial balances
The accountant for Eva’s Laundry prepared the following unadjusted and adjusted trial balances. Assume that all balances in the unadjusted trial balance and the amounts of the adjustments are correct. Identify the errors in the accountant’s adjusting entries, assuming that none of the accounts were affected by more than one adjusting entry.
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Eva’s Laundry Trial Balances May 31, 2014 |
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Unadjusted |
Adjusted |
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Debit Balances |
Credit Balances |
Debit Balances |
Credit Balances |
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Cash . |
7,500 |
7,500 |
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Accounts Receivable . |
18,250 |
23,250 |
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Laundry Supplies |
3,750 |
6,750 |
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Prepaid Insurance* |
5,200 |
1,600 |
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Laundry Equipment . . |
190,000 |
177,000 |
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Accumulated Depreciation—Laundry |
48,000 |
48,000 |
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Accounts Payable |
9,600 |
9,600 |
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Wages Payable |
1,000 |
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Capital Stock . . |
35,000 |
35,000 |
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Retained Earnings |
75,300 |
75,300 |
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Dividends |
28,775 |
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Laundry Revenue |
182,100 |
182,100 |
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Wages Expense |
49,200 |
49,200 |
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Rent Expense . . |
25,575 |
25,575 |
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Utilities Expense . |
18,500 |
18,500 |
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Depreciation Expense |
13,000 |
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Laundry Supplies Expense |
3,000 |
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Insurance Expense |
600 |
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Miscellaneous Expense . |
3,250 |
3,250 |
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|
350,000 |
350,000 |
358,000 |
351,000 |
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