In: Accounting
Epicenter Laundry
UNADJUSTED TRIAL BALANCE
June 30, 2019
ACCOUNT TITLE | DEBIT | CREDIT | |
---|---|---|---|
1 |
Cash |
11,000.00 |
|
2 |
Laundry Supplies |
21,500.00 |
|
3 |
Prepaid Insurance |
9,600.00 |
|
4 |
Laundry Equipment |
232,600.00 |
|
5 |
Accumulated Depreciation |
125,400.00 |
|
6 |
Accounts Payable |
11,800.00 |
|
7 |
Sophie Perez, Capital |
105,600.00 |
|
8 |
Sophie Perez, Drawing |
10,000.00 |
|
9 |
Laundry Revenue |
232,200.00 |
|
10 |
Wages Expense |
125,200.00 |
|
11 |
Rent Expense |
40,000.00 |
|
12 |
Utilities Expense |
19,700.00 |
|
13 |
Miscellaneous Expense |
5,400.00 |
|
14 |
Totals |
475,000.00 |
475,000.00 |
The data needed to determine year-end adjustments are as follows:
• | Laundry supplies on hand at June 30 are $3,600. |
• | Insurance premiums expired during the year are $5,700. |
• | Depreciation of laundry equipment during the year is $6,500. |
• | Wages accrued but not paid at June 30 are $1,100. |
Required:
1. | For each account listed in the unadjusted trial balance, enter the balance in a T account. Identify the balance as “Bal.” | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2. | (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the work sheet. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3. |
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4. | Prepare an adjusted trial balance. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5. | Prepare an income statement, a statement of owner’s equity, and a balance sheet.* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6. |
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7. | Prepare a post-closing trial balance.
|
:: Solution ::
DATE |
DESCRIPTION |
POST. REF. |
DEBIT |
CREDIT |
ASSETS |
LIABILITIES |
EQUITY |
1 |
|||||||
2 |
Laundry Supplies expenses |
$ 17,900.00 |
$ (17,900.00) |
||||
3 |
Laundry Supplies |
$ 17,900.00 |
$ (17,900.00) |
||||
4 |
Insurance expenses |
$ 5,700.00 |
$ (5,700.00) |
||||
5 |
Prepaid Insurance |
$ 5,700.00 |
$ (5,700.00) |
||||
6 |
Depreciation Expense |
$ 6,500.00 |
$ (6,500.00) |
||||
7 |
Accumulated Depreciation |
$ 6,500.00 |
$ (6,500.00) |
||||
8 |
Wages Expense |
$ 1,100.00 |
$ (1,100.00) |
||||
9 |
Wages payable |
$ 1,100.00 |
$ 1,100.00 |
Cash (Acct. 11) |
|||
Bal. |
$ 11,000.00 |
||
Laundry Supplies (Acct. 13) |
|||
Bal. |
$ 21,500.00 |
Adj. |
$ 17,900.00 |
Adj. Bal. |
$ 3,600.00 |
||
Prepaid Insurance (Acct. 14) |
|||
Bal. |
$ 9,600.00 |
Adj. |
$ 5,700.00 |
Adj. Bal. |
$ 3,900.00 |
||
Laundry Equipment (Acct. 16) |
|||
Bal. |
$ 2,32,600.00 |
||
Accumulated Depreciation (Acct. 17) |
|||
Bal. |
$ 1,25,400.00 |
||
Adj. |
$ 6,500.00 |
||
Adj. Bal. |
$ 1,31,900.00 |
||
Accounts Payable (Acct. 21) |
|||
Bal. |
$ 11,800.00 |
||
Wages Payable (Acct. 22) |
|||
Adj. |
$ 1,100.00 |
||
Sophie Perez, Capital (Acct. 31) |
|||
Clos. |
$ 10,000.00 |
Bal. |
$ 1,05,600.00 |
Clos. |
$ 10,700.00 |
||
Bal. |
$ 1,06,300.00 |
||
Sophie Perez, Drawing (Acct. 32) |
|||
Bal. |
$ 10,000.00 |
Clos. |
$ 10,000.00 |
Laundry Revenue (Acct. 41) |
|||
Clos. |
$ 2,32,200.00 |
Bal. |
$ 2,32,200.00 |
Wages Expense (Acct. 51) |
|||
Bal. |
$ 1,25,200.00 |
Clos. |
$ 2,52,600.00 |
Adj. |
$ 1,100.00 |
||
Adj. Bal. |
$ 1,26,300.00 |
||
Rent Expense (Acct. 52) |
|||
Bal. |
$ 40,000.00 |
Clos. |
$ 40,000.00 |
Utilities Expense (Acct. 53) |
|||
Bal. |
$ 19,700.00 |
Clos. |
$ 19,700.00 |
Laundry Supplies Expense (Acct. 54) |
|||
Adj. |
$ 17,900.00 |
Clos. |
$ 17,900.00 |
Depreciation Expense (Acct. 55) |
|||
Adj. |
$ 6,500.00 |
Clos. |
$ 6,500.00 |
Insurance Expense (Acct. 56) |
|||
Adj. |
$ 5,700.00 |
Clos. |
$ 5,700.00 |
Miscellaneous Expense (Acct. 59) |
|||
Bal. |
$ 5,400.00 |
Clos. |
$ 5,400.00 |
June 30, 2019 |
|||
ACCOUNT TITLE |
DEBIT |
CREDIT |
|
1 |
Cash |
$ 11,000.00 |
|
2 |
Laundry Supplies |
$ 3,600.00 |
|
3 |
Prepaid Insurance |
$ 3,900.00 |
|
4 |
Laundry Equipment |
$ 2,32,600.00 |
|
5 |
Accumulated Depreciation |
$ 1,31,900.00 |
|
6 |
Accounts Payable |
$ 11,800.00 |
|
7 |
Wages Payable |
$ 1,100.00 |
|
8 |
Sophie Perez, Capital |
$ 1,05,600.00 |
|
9 |
Sophie Perez, Drawing |
$ 10,000.00 |
|
10 |
Laundry Revenue |
$ 2,32,200.00 |
|
11 |
Wages Expense |
$ 1,26,300.00 |
|
12 |
Rent Expense |
$ 40,000.00 |
|
13 |
Utilities Expense |
$ 19,700.00 |
|
14 |
Laundry Supplies Expense |
$ 17,900.00 |
|
15 |
Depreciation Expense |
$ 6,500.00 |
|
16 |
Insurance Expense |
$ 5,700.00 |
|
17 |
Miscellaneous Expense |
$ 5,400.00 |
|
18 |
Totals |
$ 4,82,600.00 |
$ 4,82,600.00 |
* INCOME STATEMENT
* Statement of Owner's Equity
* Balance Sheet
DESCRIPTION |
DEBIT |
CREDIT |
Laundry Revenue |
$ 2,32,200.00 |
|
Income Summary |
$ 2,32,200.00 |
|
(revenue account closed) |
||
Income Summary |
$ 2,21,500.00 |
|
Wages Expense |
$ 1,26,300.00 |
|
Rent Expense |
$ 40,000.00 |
|
Utilities Expense |
$ 19,700.00 |
|
Laundry Supplies Expense |
$ 17,900.00 |
|
Depreciation Expense |
$ 6,500.00 |
|
Insurance Expense |
$ 5,700.00 |
|
Miscellaneous Expense |
$ 5,400.00 |
|
(expenses account closed) |
||
Income Summary |
$ 10,700.00 |
|
Sophie Perez Capital |
$ 10,700.00 |
|
(Net income closed) |
||
Sophie Perez Capital |
$ 10,000.00 |
|
Sophie Perez, Drawing |
$ 10,000.00 |
|
(drawings closed) |
June 30, 2019 |
|||
ACCOUNT TITLE |
DEBIT |
CREDIT |
|
1 |
Cash |
$ 11,000.00 |
|
2 |
Laundry Supplies |
$ 3,600.00 |
|
3 |
Prepaid Insurance |
$ 3,900.00 |
|
4 |
Laundry Equipment |
$ 2,32,600.00 |
|
5 |
Accumulated Depreciation |
$ 1,31,900.00 |
|
6 |
Accounts Payable |
$ 11,800.00 |
|
7 |
Wages Payable |
$ 1,100.00 |
|
8 |
Sophie Perez, Capital |
$ 1,06,300.00 |
|
9 |
Totals |
$ 2,51,100.00 |
$ 2,51,100.00 |