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.
Eva's Laundry
UNADJUSTED TRIAL BALANCE
May 31, 2016
ACCOUNT TITLE | DEBIT | CREDIT | |
---|---|---|---|
1 | Cash | 7,500.00 |
|
2 | Accounts Receivable | 18,250.00 |
|
3 | Laundry Supplies | 3,750.00 |
|
4 | Prepaid Insurance* | 5,200.00 |
|
5 | Laundry Equipment | 190,000.00 |
|
6 | Accumulated Depreciation-Laundry Equipment |
| 48,000.00 |
7 | Accounts Payable |
| 9,600.00 |
8 | Wages Payable |
|
|
9 | Eva Bruns, Capital |
| 110,300.00 |
10 | Eva Bruns, Drawing | 28,775.00 |
|
11 | Laundry Revenue |
| 182,100.00 |
12 | Wages Expense | 49,200.00 |
|
13 | Rent Expense | 25,575.00 |
|
14 | Utilities Expense | 18,500.00 |
|
15 | Depreciation Expense |
|
|
16 | Laundry Supplies Expense |
|
|
17 | Insurance Expense |
|
|
18 | Miscellaneous Expense | 3,250.00 |
|
19 | Totals | 350,000.00 | 350,000.00 |
* $3,600 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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