Question
The accountant for Evas Laundry prepared the following unadjusted and adjusted trial balances. Assume that all balances in the unadjusted trial balance and the amounts
The accountant for Evas Laundry prepared the following unadjusted and adjusted trial balances. Assume that all balances in the unadjusted trial balance and the amounts of the adjustments are correct.
Evas Laundry |
Trial Balances |
May 31, 2018 |
1 |
| Unadjusted | Unadjusted | Adjusted | Adjusted |
2 |
| Debit Balances | Credit Balances | Debit Balances | Credit Balances |
3 | Cash | $7,565.00 |
| $7,565.00 |
|
4 | Accounts receivable | 18,710.00 |
| 23,570.00 |
|
5 | Laundry Supplies | 3,700.00 |
| 6,455.00 |
|
6 | Prepaid Insurance* | 5,655.00 |
| 2,525.00 |
|
7 | Laundry Equipment | 193,800.00 |
| 181,125.00 |
|
8 | Accumulated DepreciationLaundry Equipment |
| $47,930.00 |
| $47,930.00 |
9 | Accounts Payable |
| 9,630.00 |
| 9,630.00 |
10 | Wages Payable |
|
|
| 1,245.00 |
11 | Common Stock |
| 34,500.00 |
| 34,500.00 |
12 | Retained Earnings |
| 79,770.00 |
| 79,770.00 |
13 | Dividends | 29,060.00 |
| 29,060.00 |
|
14 | Laundry Revenue |
| 183,300.00 |
| 183,300.00 |
15 | Wages Expense | 49,385.00 |
| 49,385.00 |
|
16 | Rent Expense | 25,075.00 |
| 25,075.00 |
|
17 | Utilities Expense | 18,820.00 |
| 18,820.00 |
|
18 | Depreciation Expense |
|
| 12,675.00 |
|
19 | Laundry Supplies Expense |
|
| 2,755.00 |
|
20 | Insurance Expense |
|
| 375.00 |
|
21 | Miscellaneous Expense | 3,360.00 |
| 3,360.00 |
|
22 |
| $355,130.00 | $355,130.00 | $362,745.00 | $362,745.00 |
* $3,130 of insurance expired during the year.
Identify the errors in the accountant's adjusting entries by preparing a corrected adjusted trial balance. Assume that none of the accounts were affected by more than one adjusting entry. If an amount box does not require an entry, leave it blank.
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