T Accounts, Adjusting Entries, Financial Statements, and Closing Entries optional end of period spreadsheet The unadjusted trial balance of La Mesa Laundry at August 31, 20Y5, the end of the fiscal year, follows La Mesa Laundry Unadjusted Trial Balance August 31, 20Y5 Debit Balances Credit Balances Cash 3,800 Laundry Supplies 9,000 Prepaid Insurance 6,000 Laundry Equipment 180,800 Accumulated Depreciation 49,200 Accounts Payable 7,800 Common Stock 15,000 Retained Earnings 80,000 Dividends 2,400 Laundry Revenue 248,000 Wages Expense 135,800 Rent Expense 43,200 Utilities Expense 16,000 Miscellaneous Expense 3,000 400,000 400,000 The data needed to determine year end adjustments are as follows Wages accrued but not paid at August 31 are $2,200 Depreciation of equipment during the year is $8,150 Laundry supplies on hand at August 31 are $2,000 Insurance premiums expired during the year are $5,300 Required 1 The following steps have already been done for you Each account balance listed in the unadjusted trial balance has been entered into its T account below, with the identification Aug 31 Bal T accounts for Wages Payable, Depreciation Expense, Laundry Supplies Expense, and Insurance Expense have been added below 2 (Optional) Enter the unadjusted trial balance on an end of period spreadsheet and complete the spreadsheet Add the accounts listed in part (1) as needed 3 Journalize and post the adjusting entries Identify the adjustments by Adj and the new balances as Adj Bal Date Account Debit Credit 20Y5 a Aug 31 Wages Expense Wages Payable b Aug 31 Depreciation Expense Accumulated Depreciation c Aug 31 Laundry Supplies Expense Laundry Supplies d Aug 31 Insurance Expense Prepaid Insurance The T accounts below are used to complete the posting requirements for part 3 and 6 Cash Aug 31 Bal 3,800 Laundry Supplies Aug 31 Bal 9,000 Prepaid Insurance Aug 31 Bal 6,000 Laundry Equipment Aug 31 Bal 180,800 Accumulated Depreciation Aug 31 Bal 49,200 Accounts Payable Aug 31 Bal 7,800 Wages Payable Common Stock Aug 31 Bal 15,000 Retained Earnings Aug 31 Bal 80,000 Dividends Aug 31 Bal 2,400 Laundry Revenue Aug 31 Bal 248,000 Wages Expense Aug 31 Bal 135,800 Rent Expense Aug 31 Bal 43,200 Utilities Expense Aug 31 Bal 16,000 Depreciation Expense Laundry Supplies Expense Insurance Expense Miscellaneous Expense Aug 31 Bal 3,000 4 Prepare an adjusted trial balance List the accounts in order by type Assets, Liabilities, Capital, Dividends, Revenue and Expenses If a box does not require an entry, leave it blank La Mesa Laundry Adjusted Trial Balance August 31, 20Y5 Debit Balances Credit Balances 5 Prepare an income statement La Mesa Laundry Income Statement For the Year Ended August 31, 20Y5 $ Expenses $ Total expenses $ Prepare a statement of stockholders equity During the year ended August 31, 20Y5, common stock of $3,000 was issued If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign La Mesa Laundry Statement of Stockholders Equity For the Year Ended August 31, 20Y5 Common Stock Retained Earnings Total $ $ $ $ $ $ Prepare a balance sheet La Mesa Laundry Balance Sheet August 31, 20Y5 Assets Liabilities Current assets Current liabilities $ $ Total liabilities $ Total current assets $ Property, plant, and equipment Stockholders' Equity $ $ Total property, plant, and equipment Total stockholders' equity Total assets $ Total liabilities and stockholders' equity $ 6 Journalize the closing entries If a box does not require an entry, leave it blank Then post the entries to the T accounts in part 3 above Identify the closing entries by Clos Provide the ending balance for the Retained Earnings account, and identify it by Bal 7 Prepare a post closing trial balance List the accounts in order by type Assets, Liabilities, Capital, Dividends, Revenue and Expenses If a box does not require an entry, leave it blank

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T Accounts, Adjusting Entries, Financial Statements, and Closing Entries; optional end-of-period spreadsheet The unadjusted trial balance of La Mesa Laundry at August 31, 20Y5, the

T Accounts, Adjusting Entries, Financial Statements, and Closing Entries; optional end-of-period spreadsheet

The unadjusted trial balance of La Mesa Laundry at August 31, 20Y5, the end of the fiscal year, follows:

La Mesa Laundry Unadjusted Trial Balance August 31, 20Y5
	Debit Balances	Credit Balances
Cash	3,800
Laundry Supplies	9,000
Prepaid Insurance	6,000
Laundry Equipment	180,800
Accumulated Depreciation		49,200
Accounts Payable		7,800
Common Stock		15,000
Retained Earnings		80,000
Dividends	2,400
Laundry Revenue		248,000
Wages Expense	135,800
Rent Expense	43,200
Utilities Expense	16,000
Miscellaneous Expense	3,000
	400,000	400,000

The data needed to determine year-end adjustments are as follows:

Wages accrued but not paid at August 31 are $2,200.
Depreciation of equipment during the year is $8,150.
Laundry supplies on hand at August 31 are $2,000.
Insurance premiums expired during the year are $5,300.

Required:

1. The following steps have already been done for you: Each account balance listed in the unadjusted trial balance has been entered into its T account below, with the identification Aug. 31 Bal. T accounts for Wages Payable, Depreciation Expense, Laundry Supplies Expense, and Insurance Expense have been added below.

2. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Add the accounts listed in part (1) as needed.

3. Journalize and post the adjusting entries. Identify the adjustments by Adj. and the new balances as Adj. Bal.

Date	Account	Debit	Credit
20Y5
a. Aug. 31	Wages Expense
	Wages Payable

b. Aug. 31	Depreciation Expense
	Accumulated Depreciation

c. Aug. 31	Laundry Supplies Expense
	Laundry Supplies

d. Aug. 31	Insurance Expense
	Prepaid Insurance

The T accounts below are used to complete the posting requirements for part 3 and 6.

Cash
Aug. 31 Bal.	3,800

Laundry Supplies
Aug. 31 Bal.	9,000

Prepaid Insurance
Aug. 31 Bal.	6,000

Laundry Equipment
Aug. 31 Bal.	180,800

Accumulated Depreciation
		Aug. 31 Bal.	49,200

Accounts Payable
		Aug. 31 Bal.	7,800

Wages Payable

Common Stock
		Aug. 31 Bal.	15,000

Retained Earnings
		Aug. 31 Bal.	80,000

Dividends
Aug. 31 Bal.	2,400

Laundry Revenue
		Aug. 31 Bal.	248,000

Wages Expense
Aug. 31 Bal.	135,800

Rent Expense
Aug. 31 Bal.	43,200

Utilities Expense
Aug. 31 Bal.	16,000

Depreciation Expense

Laundry Supplies Expense

Insurance Expense

Miscellaneous Expense
Aug. 31 Bal.	3,000

4. Prepare an adjusted trial balance. List the accounts in order by type: Assets, Liabilities, Capital, Dividends, Revenue and Expenses. If a box does not require an entry, leave it blank.

La Mesa Laundry Adjusted Trial Balance August 31, 20Y5
	Debit Balances	Credit Balances

5. Prepare an income statement.

La Mesa Laundry Income Statement For the Year Ended August 31, 20Y5
		$
Expenses:
	$






Total expenses
		$

Prepare a statement of stockholders equity. During the year ended August 31, 20Y5, common stock of $3,000 was issued. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign.


Common Stock	Retained Earnings	Total
$	$	$



$	$	$

Prepare a balance sheet.

La Mesa Laundry Balance Sheet August 31, 20Y5
Assets				Liabilities
Current assets:				Current liabilities:
		$			$

				Total liabilities		$
Total current assets			$
Property, plant, and equipment:				Stockholders' Equity
	$				$

Total property, plant, and equipment				Total stockholders' equity
Total assets			$	Total liabilities and stockholders' equity		$

6. Journalize the closing entries. If a box does not require an entry, leave it blank. Then post the entries to the T accounts in part 3 above. Identify the closing entries by "Clos." Provide the ending balance for the Retained Earnings account, and identify it by "Bal."

7. Prepare a post-closing trial balance. List the accounts in order by type: Assets, Liabilities, Capital, Dividends, Revenue and Expenses. If a box does not require an entry, leave it blank.