At the end of its fiscal year, Berwyn Cleaners, Inc.'s trial balance is as follows.

The following information is also available:
a. A study of the company's insurance policies shows that $680 is unexpired at the end of year.
b. An inventory of cleaning supplies shows $1,244 on hand.
c. Estimated depreciation on the building for the year is $12,800.
d. Accrued interest on the mortgage payable is $1,000.
e. On September 1, the company signed a contract, effective immediately, with Hope County Hospital to dry clean, for a fixed monthly charge of $400, the uniforms used by doctors in surgery. The hospital paid for four months' service in advance.
f. Sales and delivery wages are paid on Saturday. The weekly payroll is $2,520. September 30 falls on a Thursday, and the company has a six-day pay week.
g. Federal income taxes for the three months are estimated to be $2,300.
Required
All adjustments affect one balance sheet account and one income statement account. For each of the above situations, show the accounts affected, the amount of the adjustment (using a 1 or 2 to indicate an increase or decrease), and the balance of the account after the adjustment in the following format:

Transcribed Image Text:

Berwyn Cleaners, Inc. Trial Balance September 30, 2014 Cash Accounts Receivable Prepaid Insurance Cleaning Supplies Land Building Accumulated Depreciation-Building Accounts Payable Unearned Cleaning Revenue Mortgage Payable Common Stock Retained Earnings Dividends Cleaning Revenue Wages Expense Cleaning Equipment Rental Expense Delivery Truck Expense Interest Expense Other Expenses 11,788 26,494 3,400 7,374 18,000 185,000 45,600 20,400 1,600 110,000 20,000 36,560 10,000 157,634 101,330 6,000 4,374 11,000 7,034 391,794 391,794 Balance Amount of Balance After Adjustment Income Amount of Sheet Adjustment Account Balance After Adjustment Statement Adjustment +or-) Account +or -)