Reference no: EM132473284
T Accounts, Adjusting Entries, Financial Statements, and Closing Entries; optional end-of-period spreadsheet
The unadjusted trial balance of La Mesa Laundry at August 31, 20Y5, the end of the fiscal year, follows:
La Mesa Laundry Unadjusted Trial Balance August 31, 20Y5
Debit Balances Credit Balances
Cash 3,800
Laundry Supplies 9,000
Prepaid Insurance 6,000
Laundry Equipment 180,800
Accumulated Depreciation 49,200
Accounts Payable 7,800
Common Stock 15,000
Retained Earnings 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:
- Wages accrued but not paid at August 31 are $2,200.
- Depreciation of equipment during the year is $8,150.
- Laundry supplies on hand at August 31 are $2,000.
- Insurance premiums expired during the year are $5,300.
Required:
Question 1. The following steps have already been done for you: Each account balance listed in the unadjusted trial balance has been entered into its T account below, with the identification "Aug. 31 Bal." T accounts for Wages Payable, Depreciation Expense, Laundry Supplies Expense, and Insurance Expense have been added below.
Question 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.
Question 3. Journalize and post the adjusting entries. Identify the adjustments by "Adj." and the new balances as "Adj. Bal."