Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Adjustment data for Ms. Ellen's Laundry Inc. for the year ended December 31, 20Y8, are as follows: Wages accrued but not paid at December 31,

Adjustment data for Ms. Ellen's Laundry Inc. for the year ended December 31, 20Y8, are as follows:

  1. Wages accrued but not paid at December 31, $2,150
  2. Depreciation of equipment during the year, $12,500
  3. Laundry supplies on hand at December 31, $1,500
  4. Insurance premiums expired, $4,600

Instructions:

1. Record the adjustment transactions using the integrated financial statement framework. If an amount box does not require an entry, leave it blank. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.

Statement of Cash Flows Balance Sheet Income Statement
Assets = Liabilities + Stockholders' Equity
Cash + Laundry Supplies + Prepaid Insurance + Laundry Equipment - Accumulated Depreciation = Accounts Payable + Wages Payable + Common Stock + Retained Earnings
Balances, December 31, 20Y8 53,000 9,000 6,000 250,000 -65,000 7,000 0 50,000 196,000
December 31. (a) (a)
December 31. (b) (b)
December 31. (c) (c)
December 31. (d) (d)
Balances, December 31, 20Y8
Statement of Cash Flows Income Statement
Operating (Revenues) $275,000 Laundry revenue $275,000
Financing (Common Stock) 25,000 Wages expense -110,000
Operating (Expenses) -200,000 Rent expense -30,000
Investing (Equipment) -50,000 Utilities expense -18,000
Financing (Dividends) -15,000 Misc. expense -7,500
Net increase in cash $35,000 (a). December 31
Beginning cash balance, January 1, 20Y8 18,000 (b). December 31
Ending cash balance, December 31, 20Y8 $53,000 (c). December 31
(d). December 31
$

2. Prepare an income statement for the year ended December 31, 20Y8.

Ms. Ellen's Laundry Inc.
Income Statement
For the Year Ended December 31, 20Y8
$
Operating expenses:
$
Total operating expenses
$

Prepare statement of stockholders equity for the year ended December 31, 20Y8. The common stock balance as of January 1, 20Y8, was $25,000. The retained earnings balance as of January 1, 20Y8, was $101,500. If an amount box does not require an entry, leave it blank.

Ms. Ellen's Laundry Inc.
Statement of Stockholders Equity
For the Year Ended December 31, 20Y8
Common Stock Retained Earnings Total
$ $ $
$ $ $

3. Prepare a classified balance sheet as of December 31, 20Y8.

Ms. Ellen's Laundry Inc.
Balance Sheet
December 31, 20Y8
Assets
Current assets:
$
Total current assets $
Property, plant, and equipment:
$
Total assets $
Liabilities
Current liabilities:
$
Total liabilities $
Stockholders' Equity
$
Total stockholders' equity
Total liabilities and stockholders' equity $

4. Prepare a statement of cash flows for the year ended December 31, 20Y8. Use the minus sign to indicate cash out flows, decreases in cash, or cash payments.

Ms. Ellen's Laundry Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y8
Cash flows from operating activities:
$
$
Cash flows from investing activities:
Cash flows from financing activities:
$
$
$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

2. Clearly identify time constraints.

Answered: 1 week ago

Question

d. How were you expected to contribute to family life?

Answered: 1 week ago