Question
Below is the September 30, 2018 unadjusted trial balance of Car Washing, Inc. Unadjusted TB Adjustments Adjusted Trial Balance Adjusted TB DR CR DR DR
Below is the September 30, 2018 unadjusted trial balance of Car Washing, Inc.
| Unadjusted TB | Adjustments |
| Adjusted Trial Balance |
| Adjusted TB | |||||||
| DR | CR | DR | DR | CR | CR |
| DR | CR |
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Cash | $1,600 |
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Accounts receivable | 750 |
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Supplies | 400 |
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Prepaid insurance | 1,600 |
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Prepaid rent | 800 |
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Equipment | 20,000 |
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A.D. Equipment |
| $2,000 |
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Accounts payable |
| 900 |
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Wages payable |
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Interest payable |
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Unearned washing revenue |
| 600 |
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Note payable |
| 4,000 |
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Common shares |
| 1,000 |
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Retained earnings |
| 2,550 |
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Dividends | 1,000 |
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Car Washing revenue |
| 38,000 |
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Wages expense | 12,000 |
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Interest expense |
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Depreciation expense |
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Supplies expense |
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Maintenance expense | 100 |
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Insurance expense |
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Rent expense | 8,800 |
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Income tax expense | 2,000 |
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Total | $49,050 | $49,050 |
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The companys fiscal year end is September 30, and the following items require adjustment:
A count of supplies reveals $50 were on hand on September 30.
The $1,600 insurance policy was purchased on February 1, 2018.
The equipment was purchased last year. At the time of purchase, the estimated life of the equipment was 10 years with no estimated residual value.
The $4,000 note payable was issued on July 1, 2018 and accrues interest at a 7% annual rate. The note is expected to be repaid in January of 2018.
On September 1, 2018 the company entered into a 6-month contract to provide window washing for a local restaurant. The restaurant paid $600 in advance for the service. CleanPanes has washed the restaurants windows properly up to September 30.
The company had an employee who had unpaid wages of $100 on September 30.
As of September 30, the company had completed, but not yet billed $250 worth of work.
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