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accounting 119 3 Determining Adjustments P5. At the end of its fiscal year, Berwyn Cleaners' trial balance is as follows Berwyn Cleaners Trial Balance September
accounting
119 3 Determining Adjustments P5. At the end of its fiscal year, Berwyn Cleaners' trial balance is as follows Berwyn Cleaners Trial Balance September 30, 2014 11,788 26,494 3,400 7,374 18,000 185,000 Cash Accounts Receivable Prepaid Insurance Cleaning Supplies Land Building Accumulated Depreciation-Building Accounts Payable Unearned Cleaning Revenue Mortgage Payable F. Berwyn, Capital F Berwyn, Withdrawals Cleaning Revenue Wages Expense Cleaning Equipment Rental Expense Delivery Truck Expense Interest Expense Other Expenses 45,600 20,400 1,600 110,000 56,560 10,000 157,634 101,330 6,000 4,374 7,034 391 794 391.794 The tollowing information is also available: a. A study of the company's insurance policies shows that S680 is unexpired at the end of the 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. Septem ber 30 falls on a Thursday, and the company has a six-day pay weck REQUIRED All adjustments affeet 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 following format Balance Sheet Account Amount of Adjustment or- Balance After Adjustment Income Statement Account Amount of Adjustment Balance AfterStep by Step Solution
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