The unadjusted trial balance of Epicenter Laundry at June 30, 20Y3, the end of the fiscal year, follows:

Epicenter Laundry

UNADJUSTED TRIAL BALANCE

June 30, 20Y3

	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.

Prepare a post-closing trial balance.

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

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 Current assets Current liabilities Expenses For the Year Ended June 30, 2083 June 30, 20Y3 Property, plant, and equipment Revenues Amount Descriptions Decrease in owner's equity Increase in owner's equity Net income Net loss Sophie Perez, capital, June 30, 20Y3 Sophie Perez, capital, July 1, 20Y2 Total assets Total current assets Total expenses Total liabilities Total liabilities and owner's equity Total property, plant, and equipment Withdrawals Labels Current assets Current liabilities Expenses For the Year Ended June 30, 2083 June 30, 20Y3 Property, plant, and equipment Revenues Amount Descriptions Decrease in owner's equity Increase in owner's equity Net income Net loss Sophie Perez, capital, June 30, 20Y3 Sophie Perez, capital, July 1, 20Y2 Total assets Total current assets Total expenses Total liabilities Total liabilities and owner's equity Total property, plant, and equipment Withdrawals