Question

Below is the September 30, 2018 unadjusted trial balance of Car Washing, Inc.

Unadjusted TB

Adjustments

Adjusted Trial Balance

Adjusted TB

DR

CR

DR

DR

CR

CR

DR

CR

Cash

$1,600

Accounts receivable

750

Supplies

400

Prepaid insurance

1,600

Prepaid rent

800

Equipment

20,000

A.D. – Equipment

$2,000

Accounts payable

900

Wages payable

Interest payable

Unearned washing revenue

600

Note payable

4,000

Common shares

1,000

Retained earnings

2,550

Dividends

1,000

Car Washing revenue

38,000

Wages expense

12,000

Interest expense

Depreciation expense

Supplies expense

Maintenance expense

100

Insurance expense

Rent expense

8,800

Income tax expense

2,000

Total

$49,050

$49,050

The company’s fiscal year end is September 30, and the following items require adjustment:

A count of supplies reveals $50 were on hand on September 30.

The $1,600 insurance policy was purchased on February 1, 2018.

The equipment was purchased last year. At the time of purchase, the estimated life of the equipment was 10 years with no estimated residual value.

The $4,000 note payable was issued on July 1, 2018 and accrues interest at a 7% annual rate. The note is expected to be repaid in January of 2018.

On September 1, 2018 the company entered into a 6-month contract to provide window washing for a local restaurant. The restaurant paid $600 in advance for the service. CleanPanes has washed the restaurant’s windows properly up to September 30.

The company had an employee who had unpaid wages of $100 on September 30.

As of September 30, the company had completed, but not yet billed $250 worth of work.

Answer 1

WORKSHEET
30-09-18
Account Names			Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance		Income Statement		Balance Sheet
			Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash			1,600				1,600				1,600
Accounts Receivable			750		250		1,000				1,000
Office Supplies			400			350	50				50
Prepaid Insurance			1,600			1,067	533				533
prepaid rent			800				800				800
Equipment			20000				20000				20000
AD-Equipment				2,000		2000		4,000				4,000
Accounts payable				900				900				900
Wages payable						100		100				100
Interest payable						70		70				70
Unearned washing revenue				600	100			500				500
Note payable				4000				4000				4000
Common Shares'				1,000				1,000				1000
Rretained earnings				2550				2550				2550
Dividend			1,000				1,000				1000
Car wassing revenue				38000		350		38350		38350
Wages expenses			12,000		100		12,100		12,100
Interest expenses					70		70		70
Depreciation expenses					2000		2,000		2,000
Supplies expenses					350		350		350
maintenance expense			100				100		100
Insurance expense					1067		1,067		1,067
Rent expense			8,800				8,800		8,800
Income tax expense			2000				2,000		2,000
Total			49,050	49050	3,937	3,937	51,470	51,470	26,487	38,350	24,983	13,120
Net Income									11,863			11,863
Total									38,350	38,350	24,983	24,983