In: Accounting
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.
Eva's Laundry | ||||
Trial Balance | ||||
May 31, 2019 | ||||
Unadjusted | Adjusted | |||
Debit Balances |
Credit Balances |
Debit Balances |
Credit Balances |
|
Cash | 7,530 | 7,530 | ||
Accounts Receivable | 18,280 | 21,940 | ||
Laundry Supplies | 3,660 | 5,380 | ||
Prepaid Insurance* | 5,210 | 1,410 | ||
Laundry Equipment | 196,010 | 189,980 | ||
Accumulated Depreciation—Laundry Equipment | 48,200 | 48,200 | ||
Accounts Payable | 9,640 | 9,640 | ||
Wages Payable | 1,210 | |||
Eva Baldwin, Capital | 110,800 | 110,800 | ||
Eva Baldwin, Drawing | 28,800 | 28,800 | ||
Laundry Revenue | 187,800 | 187,800 | ||
Wages Expense | 49,420 | 49,420 | ||
Rent Expense | 25,710 | 25,710 | ||
Utilities Expense | 18,610 | 18,610 | ||
Depreciation Expense | 6,030 | |||
Laundry Supplies Expense | 1,720 | |||
Insurance Expense | 800 | |||
Miscellaneous Expense | 3,210 | 3,210 | ||
356,440 | 356,440 | 360,540 | 357,650 |
*3,800 of insurance expired during the year.
Identify the errors in the accountant’s adjusting entries, assuming that none of the accounts were affected by more than one adjusting entry. If an amount box does not require an entry, leave it blank.
Eva's Laundry | ||
Adjusted Trial Balance | ||
May 31, 2019 | ||
Debit Balances | Credit Balances | |
Cash | ||
Accounts Receivable | ||
Laundry Supplies | ||
Prepaid Insurance | ||
Laundry Equipment | ||
Accumulated Depreciation-Laundry Equipment | ||
Accounts Payable | ||
Wages Payable | ||
Eva Baldwin, Capital | ||
Eva Baldwin, Drawing | ||
Laundry Revenue | ||
Wages Expense | ||
Rent Expense | ||
Utilities Expense | ||
Depreciation Expense | ||
Laundry Supplies Expense | ||
Insurance Expense | ||
Miscellaneous Expense |
--Corrected Trial Balance- Adjusted
Trial Balance | ||
May 31, 2019 | ||
Accounts title | Debit | Credit |
Cash | $7,530 | |
Accounts Receivable | $21,940 | |
Laundry Supplies | $1,940 | |
Prepaid Insurance* | $1,410 | |
Laundry Equipment | $196,010 | |
Accumulated Depreciation—Laundry Equipment | $54,230 | |
Accounts Payable | $9,640 | |
Wages Payable | $1,210 | |
Eva Baldwin, Capital | $110,800 | |
Eva Baldwin, Drawing | $28,800 | |
Laundry Revenue | $191,460 | |
Wages Expense | $50,630 | |
Rent Expense | $25,710 | |
Utilities Expense | $18,610 | |
Depreciation Expense | $6,030 | |
Laundry Supplies Expense | $1,720 | |
Insurance Expense | $3,800 | |
Miscellaneous Expense | $3,210 | |
TOTAL | $367,340 | $367,340 |
--Workings
Unadjusted | Adjusted | |||||
Debit | Credit | Debit | Credit | |||
Balances | Balances | Balances | Balances | Increase in Debit Side | Increase in Credit Side | |
Cash | 7530 | 7530 | 0 | |||
Accounts Receivable | 18280 | 21940 | 3660 | |||
Laundry Supplies | 3660 | 5380 | 1720 | |||
Prepaid Insurance* | 5210 | 1410 | -3800 | |||
Laundry Equipment | 196010 | 189980 | -6030 | |||
Accumulated Depreciation—Laundry Equipment | 48200 | 48200 | 0 | |||
Accounts Payable | 9640 | 9640 | 0 | |||
Wages Payable | 1210 | 1210 | ||||
Eva Baldwin, Capital | 110800 | 110800 | 0 | |||
Eva Baldwin, Drawing | 28800 | 28800 | 0 | |||
Laundry Revenue | 187800 | 187800 | 0 | |||
Wages Expense | 49420 | 49420 | 0 | |||
Rent Expense | 25710 | 25710 | 0 | |||
Utilities Expense | 18610 | 18610 | 0 | |||
Depreciation Expense | 6030 | 6030 | ||||
Laundry Supplies Expense | 1720 | 1720 | ||||
Insurance Expense | 800 | 800 | ||||
Miscellaneous Expense | 3210 | 3210 | 0 | |||
356440 | 356440 | 360540 | 357650 |
Trial Balance | ||
May 31, 2019 | ||
Accounts title | Debit | Credit |
Cash | 7530 | |
Accounts Receivable | 21940 | |
Laundry Supplies | =3660-1720 | |
Prepaid Insurance* | 1410 | |
Laundry Equipment | 196010 | |
Accumulated Depreciation—Laundry Equipment | =48200+6030 | |
Accounts Payable | 9640 | |
Wages Payable | 1210 | |
Eva Baldwin, Capital | 110800 | |
Eva Baldwin, Drawing | 28800 | |
Laundry Revenue | =187800+3660 | |
Wages Expense | =49420+1210 | |
Rent Expense | 25710 | |
Utilities Expense | 18610 | |
Depreciation Expense | 6030 | |
Laundry Supplies Expense | 1720 | |
Insurance Expense | 3800 | |
Miscellaneous Expense | 3210 | |
TOTAL | TOTAL | TOTAL |