Question

Trial Balance May 31, 2019 Unadjusted Debit Credit Balances Adjusted Debit Credit Balances Balances Balances Cash 8,850 21,500 8,860 25,800 6,320 6.120 1,650 216,490 209,400 56,700 56,700 11.340 11,340 Accounts Receivable Laundry Supplies Prepaid brance Laundry Equipment Accumulated Depreciation Laundry Equipment Accounts Payable Wapes Payable Eva Baldwin, Capital Baldwin, Drawing Laundry Revenue Wages Expense Rent Expense Use Expense 1,420 130,300 130,300 33.900 33,900 200, 140 206,840 58.110 58.110 30,230 30,230 21.890 21.00 7,050 2,010 Depreciation Expense Laundry Supplies tense Insurance Expense Miscellaneous pense 940 3.750 3.780 405,180 409,910 400, 500 • 4470 of insurance expired during the year ently the errors in the accountant's adjusting entries, assuming that one of the accounts were affected by more than one adjusting entry an amount box does not Eva's Laundry All word MacBook Pro Display Connected: Mirror Displays Extend Desktop $ vo & 3 % 5 4 6 7 8 9 0 W E R T T Y U 0

Answer 1

Requirement 1

List Errors
1	Accounts receivables have increased by $4300, but laundry Revenue was not adjusted by this amount.
2	Laundry Supplies expense is $ 2020, and the same has been added to the Unadjusted Laundry Supplies balance instead of being deducted.
3	Insurance expense is $940, and same has to be deducted from the Prepaid Insurance unadjusted balance, but $4470 has been deducted instead.
4	Laundry Equipment have been decreased by Depreciation expense of $ 7090 instead of Accumulated Depreciation
5	Wages Payable have been adjusted by $1420 but the same has not been added to debit of Wages Expenses

Requirement 2

[Correct] Adjusted Trial balance

Accounts title	Debit Balances	Credit Balances
Cash	$        8860
Accounts Receivable	$      25800
Laundry Supplies	$   2280 [4300 – 2020]
Prepaid Insurance	$    5180 [[6120 – 940]
Laundry Equipment	$ 216490 [209400+ 7090 ]
Accumulated Depreciation—Laundry		$ 63790[56700 + 7090]
Accounts Payable		$        11340
Wages Payable		$        1420
Capital Stock		$      130300
Drawings	$      33900
Laundry Revenue		$ 211140 [206840 + 4300]
Wages Expense	$ 59530 [58110 + 1420]
Rent Expense	$      30230
Utilities Expense	$      21890
Depreciation Expense	$      7090
Laundry Supplies Expense	$        2020
Insurance Expense	$            940
Miscellaneous Expense	$        3780
TOTAL	$ 417990	$ 417990