Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

T accounts, adjusting entries, financial statements, and closing entries The unadjusted trial balance of La Mesa Laundry at August 3 1 , 2 0 Y

T accounts, adjusting entries, financial statements, and closing entries
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
Line Item Description 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
Total 400,000400,000
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.
Adjusted Trial Balance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: Timothy J Louwers, Robert J. Ramsay, David Sinason, Jerry R Strawser

1st Edition

0072954442, 9780072954449

More Books

Students also viewed these Accounting questions

Question

What are the steps involved in testing the information system?

Answered: 1 week ago

Question

What steps will Sara need to take to conduct a benefit audit?

Answered: 1 week ago