Question
Adjustment Process and Financial Statements Adjustment data for Ms. Ellen's Laundry Inc. for the year ended December 31, 20Y8, are as follows: Wages accrued but
Adjustment Process and Financial Statements 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, $2,150
Depreciation of equipment during the year, $12,500
Laundry supplies on hand at December 31, $1,500
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: | ||
$ | ||
$ | ||
$ |
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