Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 4, Problem 4.3APR
T accounts,
The unadjusted
| Epicenter Laundry Unadjusted Trial Balance June 30, 2018 | ||
| Debit Balances | Credit Balances | |
| Cash............................................................. | 11,000 | |
| Laundry Supplies................................................. | 21,500 | |
| Prepaid Insurance................................................. | 9,600 | |
| Laundry Equipment............................................... | 232,600 | |
| 125,400 | ||
| Accounts Payable................................................. | 11,800 | |
| Common Stock................................................... | 40,000 | |
| 65,600 | ||
| Dividends....................................................... | 10,000 | |
| Laundry Revenue................................................. | 232,200 | |
| Wages Expense................................................... | 125,200 | |
| Rent Expense..................................................... | 40,000 | |
| Utilities Expense.................................................. | 19,700 | |
| Miscellaneous Expense............................................ | 5,400 | |
| 475,000 | 475,000 | |
The data needed to determine year-end adjustments are as follows:
(A) Laundry supplies on hand at June 30 are $3,600.
(B) Insurance premiums expired during the year are $5,700.
(C) Depreciation of laundry equipment during the year is $6,500.
(D) Wages accrued but not paid at June 30 are $1,100.
Instructions
1. For each account listed in the unadjusted trial balance, enter the balance in a T account. Identify the balance as “June 30 Bal.” In addition, add T accounts for Wages Payable, Depreciation Expense, Laundry Supplies Expense, Insurance Expense, and Income Summary.
2. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Add the accounts listed in part (1) as needed.
3. Journalize and post the adjusting entries. Identify the adjustments by “Adj.” and the new balances as “Adj. Bal.”
4. Prepare an adjusted trial balance.
5. Prepare an income statement, a retained earnings statement, and a
6. Journalize and
7. Prepare a post-closing trial balance.
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QUESTION 2
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You may copy and paste from this list:
Accounts receivable
Discount
Interest income
Bad debt expense
Bank
Cash
Cost of Goods Sold
COGS
REQUIRED:
Interest receivable
Inventory
Notes receivable
Par
Premium
Sales discounts
Sales discounts forfeited
Sales returns…
Chapter 4 Solutions
Corporate Financial Accounting
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