v 5. Net income $10,700 GENERAL LEDGE T accounts, adjusting entries, financial s

Question

v 5. Net income $10,700 GENERAL LEDGE T accounts, adjusting entries, financial statements, and OBJ. 2, 3 PR 4-3A end-of-period spreadsheet (work sheet) closing entries; optional The unadjusted trial balance of Epicenter Laundry at June 30, 2014, the end of the current fiscal year, is shown below Epicenter Laundry Unadjusted Trial Balance June 30, 2014 Credit Debit Balances Balances 11,000 Cash 21,500 Laundry Supplies 9,600 Prepaid Insurance 232,600 Laundry Equipment 125,400 Accumulated Depreciation. 11,800 Accounts Payable 105,600 Sophie Perez, Capital 0.000 Sophie Perez, Drawing 232,200 Laundry Revenue 125,200 Wages Expense 40,000 Rent Expense 19,700 Utilities Expense 5,400 Miscellaneous Expense 475,000 475,000 (Continued) The data needed to determine year-end adjustments are as follows a. Laundry supplies on hand at June 30 are $3,600 b. Insurance premiums expired during the year are $5,700 c. Depreciation of laundry equipment during the year is $6,500 d. es accrued but not paid at June 30 are $1,100 Instructions 1. For each account listed in the unadjusted trial balance, enter the balance in a T ac count. 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 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 in 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

Particulars Amount amount cash 11000 laundry supply 21500 prpaid insurance 9600 laundry equipment 232600 dep 125400 payables 11800 capital 105600 drawings 10000 laundry revenue 232200 laundry wages 125200 rent 40000 utilities expenses 19700 miscellaneous expenses 5400 475000 475000 Journal Entries Amount debit amount credit cost of laundry supply used debit 17900 credit laundry supplies 17900 1 insurance debit 5700 credit prepaid insurance 5700 2 depreciation debit 6500 credit accumulated depeciation 6500 Ledger Accounts 3 wages debit 1100 Cash credit accrued wages 1100 to balance 11000 closing balance 11000 Laundry supplies Adjusted Trial Balance to balance b/d 21500 by cost of laundry supplies used 17900 amount debit Amount credit by closing balance 3600 cash 11000 21500 21500 laundry supply 3600 prepaid insurance prpaid insurance 3900 to balance b/d 9600 insurance 5700 laundry equipment 232600 closing balance 3900 Accumulated depreciation 131900 9600 9600 payables 11800 capital 105600 laundry equipment drawings 10000 to balance 232600 closing balance 232600 laundry revenue 232200 laundry wages 126300 accumulated depreciation rent 40000 by balance 125400 utilities expenses 19700 closing balance 131900 by depreciation 6500 miscellaneous expenses 5400 131900 131900 Insurance premium 5700 Depreciation 6500 payable wages to closing balance 11800 by opening balance 11800 accrued wages 1100 cost of laundry supply used 17900 capital drawings 10000 by balance 105000 total 482600 482600 closing balance 105700 net profit tansferd from income statement 10700 115700 115700 Income statement Laundry revenue 232200 laundry revenue less cost of laundry supplies used 17900 to income statement 232200 by balance 232200 laundry wages 126300 Gross profit 88000 laundry wages to balance 126300 by income statement 126300 less Depreciation 6500 6500 rent 40000 40000 rent utilities exp 19700 19700 to balance 40000 by income staement 40000 insurance premium 5700 5700 miscellaneous 5400 5400 Utilities Net profit 10700 to balance 19700 by income statement 19700 Balance Sheet micsellaneous expenses Liabilities Amount Assets Amount to balance 5400 by income statement 5400 Accumulated depreciation 131900 cash 11000 payables 11800 laundry supply 3600 Insurance premium capital prpaid insurance 3900 to balance 5700 by income statement 5700 accrued wages 1100 laundry equipment 232600 capital 106300 depreciation to balance 6500 by income statement 6500 Total 251100 Total 251100 accrued wages Statement of owners equity to clsoing 1100 by balance 1100 capital 105600 less drwaings 10000 Add Net profit 10700 106300

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