In: Accounting
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 Balances |
May 31, 2018 |
1 |
Unadjusted |
Unadjusted |
Adjusted |
Adjusted |
|
2 |
Debit Balances |
Credit Balances |
Debit Balances |
Credit Balances |
|
3 |
Cash |
$7,420.00 |
$7,420.00 |
||
4 |
Accounts receivable |
17,965.00 |
22,760.00 |
||
5 |
Laundry Supplies |
3,805.00 |
7,170.00 |
||
6 |
Prepaid Insurance* |
4,850.00 |
1,555.00 |
||
7 |
Laundry Equipment |
193,700.00 |
180,415.00 |
||
8 |
Accumulated Depreciation—Laundry Equipment |
$47,535.00 |
$47,535.00 |
||
9 |
Accounts Payable |
10,040.00 |
10,040.00 |
||
10 |
Wages Payable |
1,330.00 |
|||
11 |
Common Stock |
33,500.00 |
33,500.00 |
||
12 |
Retained Earnings |
76,430.00 |
76,430.00 |
||
13 |
Dividends |
28,775.00 |
28,775.00 |
||
14 |
Laundry Revenue |
185,500.00 |
185,500.00 |
||
15 |
Wages Expense |
48,990.00 |
48,990.00 |
||
16 |
Rent Expense |
25,630.00 |
25,630.00 |
||
17 |
Utilities Expense |
18,650.00 |
18,650.00 |
||
18 |
Depreciation Expense |
13,285.00 |
|||
19 |
Laundry Supplies Expense |
3,365.00 |
|||
20 |
Insurance Expense |
(70.00) |
|||
21 |
Miscellaneous Expense |
3,220.00 |
3,220.00 |
||
22 |
$353,005.00 |
$353,005.00 |
$361,165.00 |
$361,165.00 |
* $3,295 of insurance expired during the year.
Identify the errors in the accountant's adjusting entries by preparing a corrected adjusted trial balance. Assume 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
Identify the errors in the accountant's adjusting entries by preparing a corrected adjusted trial balance. Assume 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, 2018
ACCOUNT TITLE | DEBIT | CREDIT | |
---|---|---|---|
1 |
Cash |
||
2 |
Accounts Receivable |
||
3 |
Laundry Supplies |
||
4 |
Prepaid Insurance* |
||
5 |
Laundry Equipment |
||
6 |
Accumulated Depreciation-Laundry Equipment |
||
7 |
Accounts Payable |
||
8 |
Wages Payable |
||
9 |
Common Stock |
||
10 |
Retained Earnings |
||
11 |
Dividends |
||
12 |
Laundry Revenue |
||
13 |
Wages Expense |
||
14 |
Rent Expense |
||
15 |
Utilities Expense |
||
16 |
Depreciation Expense |
||
17 |
Laundry Supplies Expense |
||
18 |
Insurance Expense |
||
19 |
Miscellaneous Expense |
||
20 |
Totals |
* $3,295 of insurance expired during the year.