At the end of its fiscal year, the trial balance for Andy's Cleaners appear as shown below:

The following information is also available:
a. A study of the company's insurance policies shows that $680 is unexpired at the end of the year.
b. An inventory of cleaning supplies shows $1,150 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 $425, 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 if $3,060. September 30 falls on a Thursday, and the company has a six-day pay week.

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 + or – to indicate an increase or decrease), and the balance of the account after the adjustment in the followingformat:

Transcribed Image Text:

Andy's Cleaners Trial Balance September 30, 2010 5 11,788 26,494 3.400 7.374 18,000 186,000 Accounts Receivable Prepaid Insurance Cleaning Supplies Land Building Accumulated Depreciation-Building Accounts Payable Uneaned Cleaning Revenue Mortgage Payable A. Kopec, Capital A. Kopec, Withdrawals Cleaning Revenue Wages Expense leaning Equipment Rental Expense Delivery Truck Expense Interest Expense Other Expenses $45,600 18,400 1,700 110,000 56,560 9,000 159,634 101,330 6.100 4,374 11,000 7,034 5391,894 $391,894 Balance Amount of Income Amount of Sheet Adjustment Balance After Statement Adjustment Balance After Account or - Adjustment AccountorAdjustment