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:

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 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
a.
b.
c.
d.

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

Bobbi Downey, Capital
		Aug. 31 Bal.	95,000

Bobbi Downey, Drawing
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. 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 Statement of Owner's Equity For the Year Ended August 31, 2019
		$
	$
		$

Prepare a balance sheet.

La Mesa Laundry Balance Sheet August 31, 2019
Assets				Liabilities
Current assets:				Current liabilities:
		$			$
				Total liabilities		$
Total current assets			$
Property, plant and equipment:				Owner's Equity
	$
Total property, plant and equipment
Total assets			$	Total liabilities and owner's equity		$

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 Post-Closing Trial Balance August 31, 2019
	Debit Balances	Credit Balances
Totals