Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The unadjusted trial balance of Epicenter Laundry at June 30, 2019, the end of the fiscal year, follows: Epicenter Laundry UNADJUSTED TRIAL BALANCE June 30,

The unadjusted trial balance of Epicenter Laundry at June 30, 2019, the end of the fiscal year, follows:

Epicenter Laundry

UNADJUSTED TRIAL BALANCE

June 30, 2019

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.

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

TS 16949 Insights From A Third Party Auditor With A Process Approach Audit Checklist

Authors: Karen Welch

1st Edition

0873896548, 978-0873896542

More Books

Students also viewed these Accounting questions