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, 2019, the end of the fiscal year, follows: La Mesa Laundry Unadjusted Trial Balance August 31, 2019 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 Bobbi Downey, Capital 95,000 Bobbi Downey, Drawing 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: a. Wages accrued but not paid at August 31 are $2,200. Required: 1. The beginning account balances from the unadjusted trial balance, as of August 31st, have been entered in the T accounts in part 3 below. The T accounts will be used in parts 3 and 6. 2. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. 3. Journalize the adjusting entries. Then, post the entries in the T accounts below. Adjustments are identified by "Adj.", the new balances as "Adj. Bal." and closing entries as "Clos." Date Account Debit Credit The T accounts below are used to complete the posting requirements for part 3 and 6. Cash Cash Aug. 31 Bal. 3,800 Laundry Supplies 9,000 Aug. 31 Bal. Prepaid Insurance 6,000 Aug. 31 Bal. Laundry Equipment 180,800 Aug. 31 Bal. Accumulated Depreciation Aug. 31 Bal. 49,200 Accounts Payable Accounts Payable Aug. 31 Bal. 7,800 Wages Payable Bobbi Downey, Capital Aug. 31 Bal. 95,000 Bobbi Downey, Drawing 2,400 Aug. 31 Bal. Laundry Revenue Aug. 31 Bal. 248,000 Wages Expense 135,800 Aug. 31 Bal. Rent Expense Aug. 31 Bal. 43,200 Utilities Expense 16,000 Aug. 31 Bal. Depreciation Expense Laundry Supplies Expense Insurance Expense Miscellaneous Expense Miscellaneous Expense 3,000 Aug. 31 Bal. 4. Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank. La Mesa Laundry Adjusted Trial Balance August 31, 2019 Debit Balances Credit Balances 5. Prepare an income statement. La Mesa Laundry Income Statement For the Year Ended August 31, 2019 Expenses: Total Expenses Net income Prepare a statement of owner's equity (no additional investments were made during the year). La Mesa Laundry 6. Journalize the closing entries. For a compound transaction, if an amount box does not require an entry, leave it blank. Then post the entries to the T accounts in part 3 above. Date Account Debit Credit Close revenues, expenses & income/loss Close drawing 7. Prepare a post-closing trial balance. If a box does not require an entry, leave it blank. La Mesa Laundry Close drawing 7. Prepare a post-closing trial balance. If a box does not require an entry, leave it blank. La Mesa Laundry Post-Closing Trial Balance August 31, 2019 Debit Balances Credit Balances 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, 2019, the end of the fiscal year, follows: La Mesa Laundry Unadjusted Trial Balance August 31, 2019 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 Bobbi Downey, Capital 95,000 Bobbi Downey, Drawing 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: a. Wages accrued but not paid at August 31 are $2,200. Required: 1. The beginning account balances from the unadjusted trial balance, as of August 31st, have been entered in the T accounts in part 3 below. The T accounts will be used in parts 3 and 6. 2. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. 3. Journalize the adjusting entries. Then, post the entries in the T accounts below. Adjustments are identified by "Adj.", the new balances as "Adj. Bal." and closing entries as "Clos." Date Account Debit Credit The T accounts below are used to complete the posting requirements for part 3 and 6. Cash Cash Aug. 31 Bal. 3,800 Laundry Supplies 9,000 Aug. 31 Bal. Prepaid Insurance 6,000 Aug. 31 Bal. Laundry Equipment 180,800 Aug. 31 Bal. Accumulated Depreciation Aug. 31 Bal. 49,200 Accounts Payable Accounts Payable Aug. 31 Bal. 7,800 Wages Payable Bobbi Downey, Capital Aug. 31 Bal. 95,000 Bobbi Downey, Drawing 2,400 Aug. 31 Bal. Laundry Revenue Aug. 31 Bal. 248,000 Wages Expense 135,800 Aug. 31 Bal. Rent Expense Aug. 31 Bal. 43,200 Utilities Expense 16,000 Aug. 31 Bal. Depreciation Expense Laundry Supplies Expense Insurance Expense Miscellaneous Expense Miscellaneous Expense 3,000 Aug. 31 Bal. 4. Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank. La Mesa Laundry Adjusted Trial Balance August 31, 2019 Debit Balances Credit Balances 5. Prepare an income statement. La Mesa Laundry Income Statement For the Year Ended August 31, 2019 Expenses: Total Expenses Net income Prepare a statement of owner's equity (no additional investments were made during the year). La Mesa Laundry 6. Journalize the closing entries. For a compound transaction, if an amount box does not require an entry, leave it blank. Then post the entries to the T accounts in part 3 above. Date Account Debit Credit Close revenues, expenses & income/loss Close drawing 7. Prepare a post-closing trial balance. If a box does not require an entry, leave it blank. La Mesa Laundry Close drawing 7. Prepare a post-closing trial balance. If a box does not require an entry, leave it blank. La Mesa Laundry Post-Closing Trial Balance August 31, 2019 Debit Balances Credit Balances