Question

The unadjusted trial balance of Epicenter Laundry at June 30, 2016, the end of the flocal year follows: Epicenter Laundry UNADJUSTED TRIAL BALANCE June 30, 2016 ACCOUNT TITLE 1 Cash Laundry Supplies Prepaid Insurance Laundry Equipment Accumulated Depreciation 125.000.00 Accounts Payable 21.30 Common Stock 4 00.00 55720000

Answer 1

Credit Adjusting Entries : Particulars Laundry Expense Laundry Supplies (Being Supplies expensed off) Debit 17,900 $ $ 17,900 $ 5,700 Insurance Expense Prepaid Insurance (Being expired insurance is expensed off) $ 5,700 $ 6,500 Depreciation Expense Accumulated Depreciation (Being Depreciation is expensed off) $ 6,500 $ 1,100 $ 1,100 Wages Expense Wages Payable (Being wages accrued but not paid is accounted)

Credit Epicenter Laundry Adjusted Trial Balance Particulars Debit Cash 11,000 Laundry Supplies $ 8,600 Prepaid Insurance 3,900 $ 232,600 $ 131,900 11,800 1,100 40,000 65,600 $ 5,000 laundry Equipment Accumulated Depreciation Accounts Payable Wages Payable Common Stock Retained Earnings Dividends Laundry Revenue Laundry Expense Depreciation Expense Insurance Expense Wage Expenses Rent Expense Utilities Expense Miscellaneous Expense Total $ 232,200 17,900 6,500 5,700 126,300 40,000 19,700 5,400 482,600 $ $ $ $ 482,600

Preparation of Income Statement : Epicenter Laundry Income Statement For the Year Ended June 30, 2046 Particulars $ Laundry Revenue Amount ($) $ 232,200 Total Revenue $ 232,200 Less: Operating Expenses Laundry Expense Depreciation Expense Insurance Expense Wage Expenses Rent Expense Utilities Expense Miscellaneous Expense Total Operating Expenses Net Income 17,900 6,500 5,700 126,300 40,000 19,700 5,400 $ 221,500 $ 10,700

Preparation of the Statement of the Retained Earnings: Epicenter Laundry Statement of Stockholders' Equity For the Year Ended June 30, 2016 Retained Particulars Common Stock Earnings Opening Balance 40,000 $ 65,600 Add: Additions $ 10,700 40,000 $ 76,300 Less : Dividends $ (5,000) Ending Balance 40,000 $ 71,300 S

$ Amount ($) Preparation of Balance Sheet: Epicenter Laundry Balance Sheet June 30, 2016 Particulars Current Assets: Cash $ Laundry Supplies Laundry Supplies $ Prepaid Insurance Total Current Assets 11,000 8,600 3,900 $ 23,500 Property, plant and Equiment: Laundry Equipment Accumulated Depreciation - Buildings $ $ 232,600 (131,900) $ 100,700 Total Assets $ 124,200 Liabilities: Current Liabilities: Accounts Payable Wages Payable Total Current Liabilities $ $ 11,800 1,100 $ 12,900 Total Liabilities $ 12,900 Stockholders' Equity: Common Stock Retained Earnings Total Stockholders' Equity $ 40,000 $ 71,300 $ 111,300 T Total Liabilties and Stockholders' Equity $ 124,200

Credit Epicenter Laundry Post-Closing Trial Balance Particulars Debit Cash 11,000 Laundry Supplies 8,600 Prepaid Insurance 3,900 laundry Equipment 232,600 Accumulated Depreciation Accounts Payable Wages Payable Common Stock Retained Earnings Total 256,100 $ 131,900 $ 11,800 $ 1,100 $ 40,000 $ 71,300 $ 256,100