Adjustment data for Nocturnal Laundry, Inc., for the year ended August 31, 2007, are as follows:

a. Wages accrued but not paid at August 31, $3,200.

b. Depreciation of equipment during the year, $15,000.

c. Laundry supplies on hand at August 31, $2,500.

d. Insurance premiums expired, $3,000.

Instructions

1. Using the integrated financial statement framework shown at the top of the following page, record each adjustment to the appropriate accounts identifying each adjustment by its letter. After all adjustments are recorded, determine the balances.

2. Prepare an income statement and retained earnings statement for the year ended August 31, 2007. The retained earnings balance as of September 1, 2006, was $30,300.

3. Prepare a classified balance sheet as of August 31, 2007.

4. Prepare a statement of cash flows for the year ended August 31,2007.

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Balance Sheet Statement of Cash Flows Income Statement Assets - Liabilities+Stockholders' Equity Laundry Prepaid LaundryAcAccts Wages Capital Retained Cash + Supplies + Insurance + Equip.Deprec Payable + Payable + Stock +Earnings 36,000 174,700 Balances, Aug. 31, 2007 25,000 6,000 4,800 225,000 45,000 5,100 Statement of Cash Flows Operating (Revenues) 280,000 Financing (Capital Stock) 10,000 Operating (Expenses) 160,000 Investing (Equipment)-110,000 Financing (Dividends 4,000 Net increase in cash Beginning cash balance 9,000 Ending cash balance 500 Income Statement | STATEMENT FRAMEWORK Aug. 280,000 Laundry revenue Aug.77,500 Wages expense Aug. 28,000 Rent expense Aug. 22,600 Utilities expense Aug. 3,500 Misc. expense , INTEGRATED FINANCIAL 16,000