Tom Way just started a cleaning business in August 2015 and will start the operation in September 2015 The Trial Balance for Wayzata Cleaning, Inc., as of August 31, 2015, is presented bellow. Wayzata Cleaning, Inc Trial Balance August 31, 2015 Debit $ 59,150.00 $ 6,000.00 Credit Cash Supplies Accounts Payable Common Stock Utility Expense Advertising Expense Miscellaneous Expense $ 6,000.00 $ 60,000.00 $300.00 $500.00 $ 50.00 Total $ 66,000.00 $66,000.00 September 1 Paid six months' rent $9,000 1 Purchased cleaning equipments for $12,000 on account. 1Tom invested his truck with a $18,000 fair market value in exchange for the company's common stock. 2 Paid One year insurance $1,200 cash 2 Received $6,000 from a customer for services to be provided in the next six months 6 Paid salary to employees for $2,000 7 Purchased $1,000 Supplies on account. 9 12 13 17 19 20 22 25 26 27 28 31 Performed services and received $5,000 cash Billed customers for services performed, $2,000 Paid salary to employees for $2,000 Received $2,000 on account Paid $2,400 on account. Paid salary to employees for $2,000 Received $2,500 for services performed Paid $1,000 dividends Performend $1,500 services on account. Paid salary to employees for $2,000 Paid $300 for utilities Received $2,000 from a customer for services to be provided in October 2013 Required 1.0 Journal the transactions that occurred in September 2013 2.0 Post the journal entries to the General Ledger 3.0 Calculate the new balances as of September 31, 2013 4.0 Prepare the Un-Adjusted Trial Balance for Wayzata Cleaning, Inc. at September 31, 2013 5.0 Prepare the Financial Statements for Wayzata Cleaning, Inc. ending and on September 31, 2013 Date Account Dr Cash Common Stock September 59,150.00 9,000.00 6,000.001,200.00 ,000.00 2,000.00 2,000.00 2,000.00 2,500.00 2,400.00 2,000.00 2,000.00 1,000.00 2,000.00 300.00 60,000.00 18,000.00 1 Prepaid Rent $ 9,000.00 cash $ 9,000.00 1 Cleaning Equipment $12,000.00 Account payable $12,000.00 78,000.00 1Truck 18,000.00 Common stock 18,000.00 A/P 2 Prepaid Insurance cash 2,400.00 6,000.00 12,000.00 1,000.00 $1,200.00 $1,200.00 54,750.00 2l Cash $ 6,000.00 earned revenue 6,000.00 Supplies 16,600.00 un 6,000.00 1,000.00 6 Salary expense $2,000.00 cash $2,000.00 7 Supplies $1,000.00 Account payable $1,000.00 7,000.00 9 cash $ 5,000.00 Utility Expense 300.00 300.00 Miscellaneous Expense Service revnue $5,000.00 50.00 12 Account Recivable $ 2,000.00 Service revenue $ 2,000.00 600.00 50.00 13 Salary Expense $ 2,000.00 Cash $ 2,000.00 17 Cash $ 2,000.00 Advertising Expense Account Recivable $2,000.00 500.00 19 Account Payable cash $ 2,400.00 $ 2,400.00 500.00 20 Salary Expense $2,000.00 Cash $ 2,000.00 22 cash $2,500.00 service Revenue $2,500.00 25Dividend Cash $1,000.00 $1,000.00 26 Account recivable $1,500.00 $1,500.00 service revenue 27 Salary Expense $2,000.00 Cash $ 2,000.00 28 utilitiesExpense 300.00 cash 300.00 31 cash $ 2,000.00 $2,000.00 unearned revenue Wayzata Cleaning, Inc Trial Balance September 30, 2015 Debit Credit Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Cleaning Equipment 54,750.00 1,500.00 7,000.00 9,000.00 1,200.00 12,000.00 18,000.00 ruc Accounts Payable Unearned Service Revenue Common Stock Dividends Service Revenue Utility Expense Advertising Expense Miscellaneous Expense Salary Expense 16,600.00 8,000.00 78,000.00 1,000.00 11,000.00 600.00 500.00 50.00 8,000.00 Total113,600.00 113,600.00 Wayzata Cleaning, Inc Income Statement Wayzata Cleaning, Inc. Balance Shect September 30, 2015 For the Month Ended September 30, 2015 Service Revenue 11,000.00 Assets Cash Account receivables Supplies Prepaid Rent Prepaid Insurance Liabilities Expenses 54,750.00 Account Payables 16,600.00 Utility Expense Advertising Expense Miscellaneous Expense Salary Expense 600.00 500.00 50.00 8,000.00 9,150.00 850.00 $1,500.00 Unearned Service Revenue 8,000.00 $7,000.00 $9,000.00 $1,200.00 Total Current Liabilities 24,600.00 Total Current Assets73,450.00Equity Total Expenses Net Income $78,000.00 850.00 $78,850.00 Common Stock Cleaning Equipment Truck Retained Earnings 12,000.00 18,000.00 $30,000.00 Total Equity Wayzata Cleaning, Inc. Statement of Retained Earnings For the Month Ended September 30, 2015 Total Fixed Assets Total Assets 103,450 Total Debt Equity 103,450.0 Beginning Retained Earnings Net Income 1,850.00 1,850.00 1,000.00 850.00 Total Dividends Ending Retained Earnings Tom knew that accounting was based on accruals and some adjustments were needed at the end of September. The following information is provided to prepare the adjusting entries at the end of September 2015. 30-Sep 1 Recognize the rent expense for the month of September 2 Cleaning equipment is depreciated for 5 years. The salvage value is zero. The company uses straight line depreciation method 3 The truck is depreciated for 5 years. The salvage value is $3,000. The company uses straight line depreciation. 4 Recognize the insurance expense for the month of September. 5 Recognize the revenue from 1 month service that has been provided to a client from September 2 transaction 6 At the end of September, the company has $6,500 supplies available. 7 The company pays $2,000 salary every Friday. September 30 is Monday. 8 The company has provided a $5,000 service to a client that has not been billed. Required 1 Prepare the adjusting entries. 2 Post the adjustments to the General Ledger. 3 Calculate the adjusted balances for the affected accounts. 4 Prepare the Adjusted Trial Balance for Wayzata Cleaning, Inc. at September 31, 2015. 5 Prepare the Financial Statements for Wayzata Cleaning, Inc. ending and on September 31, 2015 Account Dr Cr Cash Rent id Insurance 30- 54,750.00 78,000.00 9,000.00 1,200.00 78,000.00 9,000.00 1,200.00 A/P Cleaning Equipment 12,000.00 Salary Ex 8,000.00 16,600.00 54,750.00 Supplies 8,000.00 Truck 18,000.00 7,000.00 Utility Expense 600.00 Miscellanoues Expense 50.00 1,000.00 500.00 50.00 Accounts Receivable 1,500.00 Unearned Service Revenue 8,000.00 Depreciation-Cleaning Eqp Cost Salvage Value Depreciated value Useful life Annual Depreciation Monthly depreciation 500.00 1,500.00 Created by the adjusting entries 8,000.00 500.00 Service Revenue Depreciation Ceaning Truck 11,000.00 Salvage Value Depreciated value Annual Depreciation Monthly depreciation 11,000.00 Wayzata Cleaning, Inc. Adjusted Trial Balance September 30, 2015 Debit Credit Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Cleaning Equipment Accumulated Depreciation - Cleaning Eqp Truck Accumulated Depreciation Truck Accounts Payable Salary Payable Unearned Service Revenue Common Stock Retained Earnings Dividends Service Revenue Utility Expense Advertising Expense Miscellaneous Expense Salary Expense Total Wayzata Cleaning Income Statement For the Month Ended September 30, 2015 Wayzata Cleaning Balance Sheet September 30, 2015 Service Revenue Assets Cash Account receivables Supplies Prepaid Rent Prepaid Insurance Account Payables Utility Expense Advertising Expense Miscellaneous Expense Salary Expense Unearned Service Revenue Total Current Liabilities Total CA Equity Common Stock Retained Earnings Cleaning Equipment Less: Accumulated Depreciation - Eqp Truck Less: Accumulated Depreciation-Truck Total Equity Total Expenses Net Income Total FA Total Assets Total Debt+ Equity Wayzata Cleaning Statement of Retained Earni For the Month Ended September 30, 2015 Beginnin Net Income g Retained Earnings Total Ending Retained Earnings Tom just started a cleaning business on August 2015 and started the operation in September 2015 The following trial balance was prepared at the end of September 2015 Wayzata Cleaning, Inc Unadjusted Trial Balance 30-Sep-15 Debit $ 54,750.00 $ 1,500.00 $ 7,000.00 $ 9,000.00 $ 1,200.00 $ 12,000.00 $ 18,000.00 Credit Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Cleaning Equipment ruc Accounts Payable Unearned Service Revenue Common Stock Retained Earnings Dividends Service Revenue Utility Expense Advertising Expense $ 16,600.00 $ 8,000.00 $ 78,000.00 $ 1,000.00 $ 11,000.00 $ 600.00 $500.00 Miscellaneous Expense $ 50.00 Salary Expense Total $ 8,000.00 $ 113,600.00 $ 113,600.00 Required: Using the provided worksheet, prepare the company's Financial Statements using the following steps: Prepare the un-adjustmented Column 1 Prepare the adjustments Column 2 Prepare the adjusted trial balance Column 3 Prepare the Income Statement columns 4 Prepare the Statement of Retained Earnings Column 5 Prepare the Balance Sheet Column Adjustments Adjusted TB Statement of R/E Cr Account Unadjusted TB Income Statement Cr Cr Cr Dr Cr Service Revenue Utility Expense Advertising Expense Miscellaneous Expense Salary Expense Total Net Income Total Ending Retained Earnings Total Balance Sheet Dr Cr