The unadjusted trial balance of Epicenter Laundry at June 30, 2016, the end of the fiscal year, follows:

Epicenter Laundry

UNADJUSTED TRIAL BALANCE

June 30, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	11,000.00
2	Laundry Supplies	21,500.00
3	Prepaid Insurance	9,600.00
4	Laundry Equipment	232,600.00
5	Accumulated Depreciation		125,400.00
6	Accounts Payable		11,800.00
7	Sophie Perez, Capital		105,600.00
8	Sophie Perez, Drawing	10,000.00
9	Laundry Revenue		232,200.00
10	Wages Expense	125,200.00
11	Rent Expense	40,000.00
12	Utilities Expense	19,700.00
13	Miscellaneous Expense	5,400.00
14	Totals	475,000.00	475,000.00

The data needed to determine year-end adjustments are as follows:

	Laundry supplies on hand at June 30 are $3,600.
	Insurance premiums expired during the year are $5,700.
	Depreciation of laundry equipment during the year is $6,500.
	Wages accrued but not paid at June 30 are $1,100.

Required:

1.

For each account listed in the unadjusted trial balance, enter the balance in a T account. Identify the balance as Bal.

2.

(Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the work sheet.

3.

a.	Journalize the adjusting entries on page 10 of the journal. Adjusting entries are recorded on June 30.
b.	Post the adjusting entries. In the T accounts, identify the adjustments by Adj. and the new balances as Adj. Bal. (Be sure to add a posting reference to the journal.)

4.

Prepare an adjusted trial balance.

5.

Prepare an income statement, a statement of owners equity, and a balance sheet.*

6.

a.	Journalize the closing entries on page 11 of the journal.
b.	Post the closing entries. In the T accounts, identify the closing entries by Clos. (Be sure to add a posting reference to the journal.)

7.

7. Prepare a post-closing trial balance.

*Be sure to read the instructions for each financial statement carefully.

Chart of Accounts

CHART OF ACCOUNTS

Epicenter Laundry

General Ledger

	ASSETS
11	Cash
13	Laundry Supplies
14	Prepaid Insurance
16	Laundry Equipment
17	Accumulated Depreciation

	LIABILITIES
21	Accounts Payable
22	Wages Payable

	EQUITY
31	Sophie Perez, Capital
32	Sophie Perez, Drawing
33	Income Summary

	REVENUE
41	Laundry Revenue

	EXPENSES
51	Wages Expense
52	Rent Expense
53	Utilities Expense
54	Laundry Supplies Expense
55	Depreciation Expense
56	Insurance Expense
59	Miscellaneous Expense

Labels and Amount Descriptions

Labels
Current assets
Current liabilities
Expenses
For the Year Ended June 30, 2016
June 30, 2016
Property, plant, and equipment
Revenues
Amount Descriptions
Add withdrawals
Decrease in owners equity
Increase in owners equity
Less withdrawals
Net income
Net loss
Sophie Perez, capital, June 30, 2016
Sophie Perez, capital, July 1, 2015
Total assets
Total current assets
Total expenses
Total liabilities
Total liabilities and owners equity
Total property, plant, and equipment

T Accounts

1.	For each account listed in the unadjusted trial balance, enter the balance in the appropriate T account. Identify the balance as Bal.
3.b.	Post the adjusting entries. Identify the adjustments by Adj. and the new balances as Adj. Bal.
6.b.	Post the closing entries. In the T accounts, identify the closing entries by Clos. (Be sure to add a posting reference to the journal.)

Cash (Acct. 11)

Laundry Supplies (Acct. 13)

Prepaid Insurance (Acct. 14)

Laundry Equipment (Acct. 16)

Accumulated Depreciation (Acct. 17)

Accounts Payable (Acct. 21)

Wages Payable (Acct. 22)

Sophie Perez, Capital (Acct. 31)

Sophie Perez, Drawing (Acct. 32)

Income Summary (Acct. 33)

Laundry Revenue (Acct. 41)

Wages Expense (Acct. 51)

Rent Expense (Acct. 52)

Utilities Expense (Acct. 53)

Laundry Supplies Expense (Acct. 54)

Depreciation Expense (Acct. 55)

Insurance Expense (Acct. 56)

Miscellaneous Expense (Acct. 59)

Work Sheet

(Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the work sheet.

Journal

3.a.	Journalize the adjusting entries on page 10 of the journal. Adjusting entries are recorded on June 30.
6.a.	Journalize the closing entries on page 11 of the journal. (Note: Complete the adjusted trial balance, the income statement, the statement of owners equity, and the balance sheet BEFORE completing part 6. a.)

PAGE 10PAGE 11

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1		Adjusting Entries
2
3
4
5
6
7
8
9

Adjusted Trial Balance

4. Prepare an adjusted trial balance.

Epicenter Laundry

ADJUSTED TRIAL BALANCE

June 30, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Laundry Supplies
3	Prepaid Insurance
4	Laundry Equipment
5	Accumulated Depreciation
6	Accounts Payable
7	Wages Payable
8	Sophie Perez, Capital
9	Sophie Perez, Drawing
10	Laundry Revenue
11	Wages Expense
12	Rent Expense
13	Utilities Expense
14	Laundry Supplies Expense
15	Depreciation Expense
16	Insurance Expense
17	Miscellaneous Expense
18	Totals

Income Statement

5. Prepare an income statement for the year ended June 30, 2016. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement.

Epicenter Laundry

Income Statement

1
2
3
4
5
6
7
8
9
10
11

Statement of Owners Equity

5. Prepare a statement of owners equity for the year ended June 30, 2016. No additional investments were made during the year. If a net loss has been incurred or there has been a decrease in owners equity, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items.

Epicenter Laundry

Statement of Owners Equity

1
2
3
4
5

Balance Sheet

5. Prepare a balance sheet as of June 30, 2016. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary.

Epicenter Laundry

Balance Sheet

1	Assets
2
3
4
5
6
7
8
9
10
11
12	Liabilities
13
14
15
16
17	Owners equity
18
19

Post-closing Trial Balance

7. Prepare a post-closing trial balance.

Epicenter Laundry

POST-CLOSING TRIAL BALANCE

June 30, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Laundry Supplies
3	Prepaid Insurance
4	Laundry Equipment
5	Accumulated Depreciation
6	Accounts Payable
7	Wages Payable
8	Sophie Perez, Capital
9	Totals