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, 2018, the end of the fiscal year, follows:

La Mesa Laundry Unadjusted Trial Balance August 31, 2018
	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:

1. Wages accrued but not paid at August 31 are $2,200.
2. Depreciation of equipment during the year is $8,150.
3. Laundry supplies on hand at August 31 are $2,000.
4. 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, Insurance Expense, and Income Summary 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.

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

5. Prepare an income statement.

Date Account Debit Credit 2018 a. Aug. 31 b. Aug. 31 THI C. Aug. 31 d. Aug. 31 The T accounts below are used to complete the posting requirements for part 3 and 6. Cash Aug. 31 Bal. 3,800 Laundry Supplies 9,000 Aug. 31 Bal. Prepaid Insurance Aug. 31 Bal. 6,000 Laundry Equipment 180,800 Aug. 31 Bal. 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 2,4004 Aug. 31 Bal. Income Summary 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 La Mesa Laundry Adjusted Trial Balance August 31, 2018 Debit Balances Credit Balances La Mesa Laundry Income Statement For the Year Ended August 31, 2018 $ Expenses: $ Total expenses $ Prepare a retained earnings statement. La Mesa Laundry Retained Earnings Statement For the Year Ended August 31, 2018 $ $ Prepare a balance sheet. La Mesa Laundry Balance Sheet August 31, 2018 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 II Total assets Total liabilities and stockholders' equity 6. Journalize the closing entries. For a compound transaction, 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 th Retained Earnings account, and identify it by "Bal." Date Account Debit Credit Aug.31 Close revenues Aug.31 Close expenses Aug.31 Close income/loss Aug.31 Close dividends 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. La Mesa Laundry Post-Closing Trial Balance August 31, 2018 Debit Balances Credit Balances