A T accounts, adjusting entries, financial statements, and OBJ. 2, 3 closing entries; optional end-of-period spreadsheet (work sheet)
The unadjusted trial balance of Epicenter Laundry at June 30, 2014, the end of the current Finical year, is shown below.
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Epicenter Laundry Unadjusted Trial Balance June 30, 2014 |
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Debits Balances |
Credit Balances |
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Cash . . |
11,000 |
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Laundry Supplies |
21,500 |
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Prepaid Insurance |
9,600 |
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Laundry Equipment . |
232,600 |
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Accumulated Depreciation |
125,400 |
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Accounts Payable |
11,800 |
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Capital Stock . |
40,000 |
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Retained Earnings . . |
65,600 |
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Dividends |
10,000 |
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Laundry Revenue |
232,200 |
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Wages Expense . |
125,200 |
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Rent Expense . |
40,000 |
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Utilities Expense |
19,700 |
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Miscellaneous Expense |
5,400 |
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475,000 |
475,000 |
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The data needed to determine year-end adjustments are as follows:
- Laundry supplies on hand at June 30 are $3,600.
- Insurance premiums expired during the year are $5,700.
- Depreciation of laundry equipment during the year is $6,500.
- Wages accrued but not paid at June 30 are $1,100.
Instructions
- For each account listed in the unadjusted trial balance, enter the balance in a T account. Identify the balance as “June 30 Bal.” In addition, add T accounts for Wages Payable, Depreciation Expense, Laundry Supplies Expense, Insurance Expense, and Income Summary.
- (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.
- Journalize and post the adjusting entries. Identify the adjustments by “Adj.” and the new balances as “Adj. Bal.”
- Prepare an adjusted trial balance.
- Prepare an income statement, a retained earnings statement, and a balance sheet.
- Journalize and post the closing entries. Identify the closing entries by “Clos.”
Prepare a post-closing trial balance.