Question

The data needed to determine year-end adjustments are as follows: 0 are $3,600. A. Laundry supplies hand at June 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. Required: Note: Download the spreadsheet n the T Accounts panel, saving the Excel file to your computer. Be sure to save your work in Excel. The spreadsheet input will not be included in your grade in CengageNOW on this problem. For each account listed in the unadiusted trial balance, enter the balance in a Taccount. Identify the balance as "Bal." Using the Excel spreadsheet downloaded from the T Accounts panel, click the Work Sheet tab. Enter the unadjusted trial balance on the end- of-period work sheet and complete the work sheet. a. Journalize the adjusting entries npage 10 of the journal. Adjusting entries are recorded on June 30. Refer to the Chart of Accounts for exact wording of account titles. 3. 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.) Prepare an adjusted trial balance. 5. a. Prepare an income statement for the year ended June 30, 2018. Ifa net loss has been incurred, enter that amount a negative number using a minus sign. Be sure to complete the statement heading. You will not need to enter colons () on the income statement. Refer to the Chart Accounts for exact wording of account titles. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names. b. Prepare a retained earnings statement for the year ended June 30, 2018. If a net loss is incurred or dividends were paid, enter that amount sa negative number using a minus sign. Be sure to complete the statement heading. Refer to the Chart of Accounts for exact wording of account titles. Refer o the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names c. Prepare a balance sheet s of June 30, 2018. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. You will not need to enter colons () on the balance sheet they will automatically insert where necessary. Refer to the Chart of Accounts for exact wording of account titles. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text negative numbers use a minus sign. entries other than account names. For those boxes in which you must enter subtracted 6. a. Journalize the closing entries on page 1 of the journal. Refer to the Chart of Accounts for exact wording account titles. (Note: Complete the adjusted trial balance, the income statement, the retained earnings statement, and the balance sheet BEFORE completing part 6. a) b. Post the closing entries. In the Taccounts, identify the closing entries by Clos." (Be sure to add a posting reference to the journal.) Prepare a post-closing trial balance Instructions The unadjusted trial balance of Epicenter Laundry at June 30, 2018, the end of the fiscal year, follows: Epicenter Laundry UNADJUSTED TRIAL BALANCE June 30, 2018 ACCOUNT TITLE DEBIT CREDIT 11,000.00 Cash 1 Laundry Supplies 21,500.00 2 Prepaid Insurance 9,600.00 Laundry Equipment 232,600.00 5Accumulated Depreciation 125,400.00 6 Accounts Payable 11,800.00 7 Common Stock 40,000.00 8 Retained Earnings 65,600.00 9 Dividends 10,000.00 10 Laundry Revenue 232,200.00 11 Wages Expense 125,200.00 12 Rent Expense 40,000.00 13 Utilities Expense 19,700.00 14 Miscellaneous Expense 5,400.00 475,000.00 475,000.00 15 Totals The data needed to determine year-end adjustments are as follows: A Laundry supplies on hand at June 30 are $3,600 Meler to th Chart of Accounts for eact wordng af sccount e Ja Joumaize tme aqusting on cae 10 of the joum Adetg wntrw 6oumale the chang ente hurad tal balanne the inome ratemert me e retained eamings ststement, and me balance sheet DeroRE completing part 6 tranoctians nam mat e antered sh t refsl efare yo will zerebve Che Ny Wark fredbacks ACCOUNTING EQUATION JOURNA Score: 31/303 DESCRIPTION POST, BE DET CRDT ETS LINDLITIS QUT Adjusting Entries Supplies Expanses 232,200 00 Melaneut Fapon ..... 1100 00 Acouns Pavable 11 80000 Conmon Stock 400000 Ports 5774 Hetaned Eamings Statement Shaded cela hare foecback. 5 Prwparea ta a sa for the r u wr unu a minue non Euauy statement hawcing Rar o thw Cha af Accountr for act wcing af wccn Rio thw t Latete and Amcut Desrptia for cacd warcig embie th me answe choire rtest entmC of rthan sccount oNnera Scere 36/51 Eolcenter Laundry Retaired tamngs emem For the Year Frded June 30 2018 Rerained eaminos, N 1.2017 Net iname 510,70000 Dividends 10.0000 Charge in retained eamings Reained eaminos Jure 30, 2018 $185 80000 Ponts 762/11 Balance Sheet Staded cels have feedtuak. ens () on me beance aheet yw automaticaly nsert where necessay Reter to he Chart of Accounts for exect wording of account roes. Reter to the sts of Labels and mout Descdntions thregart wocien of the antuer choices fhriest entides ctherfhan Ancouet camTes Formese boues io which vou must erter cut toe rierdi or nenative nuethers uneamibve she Score: 2/135 Cocerter Laundry June 30, 2018 Armens Cab aho Labiles Stocholdes Equiy Post-closing Trial Balance 7. Prepare a post-closing trial balance. Question not attemp ted. Score: 0/39 Epicenter Laundry POST-CLOSING TRIAL BALANCE June 30, 2018 ACCOUNT TITLE DEBIT CREDIT Cash 2Laundry Supplies Prepaid Insurance Laundry Equipment 5Accumulated Depreciation 6 Accounts Payable Wages Payable 7 8 Common Stock 9Retained Earnings 10 Totals

Answer 1

Epicenter Laundry Adjusting Enteries Debit in $ Credit in $ Particulars Date 30.6.2018 Supplies Expense a/c To Laundry Supplies |(Supplies Expensed) Dr. 17900 17900 30.6.2018 Insurance Expense a/c Dr. 5700 To Prepaid Insurance 5700 |(Insurance expensed) 30.6.2018 Depreciation Expense a/c To Accum. Depre -Equip Dr. 6500 6500 (To record depreciation) 30.6.2018 Wages Expense a/c Dr. 1100 To Wages Payable 1100 (Wages accrued) Closing Enteries Debit in $ Credit in $ Particulars Date 30.6.2018 Income Summary a/c Dr. 221500 To Wages Expense 126300 To Rent Expense 40000 To Utilities Expense 19700 To Miscellaneous Expense 5400 To Supplies Expense 17900 To Insurance Expense 5700 To Depreciation Expense 6500 (Expense accounts closed) 30.6.2018 Laundry Revenue a/c 232200 Dr. To Income Summary 232200 (Revenue accounts closed) 30.6.2018 Income Summary a/c Dr. 10700 To Retained Earnings 10700 (Profits transferred to Retained Earnings) 30.6.2018 Retained Earnings a/c Dr. 10000 To Dividends 10000 (Dividends charged to Retained Earnings)

Worksheet For the period ending 30.6.2018 Adjustment Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Unadjusted Adjusted Particulars Cash 11000 11000 Laundry Supplies 21500 17900 3600 Prepaid Insurance 9600 5700 3900 Laundry Equipment Accum. Depre -Equip 232600 232600 125400 6500 131900 Accounts Payable 11800 11800 Wages Payable 1100 1100 Common Stock 40000 0000 Retained Earnings 65600 65600 Dividends 10000 10000 Laundry Revenue 232200 232200 Wages Expense 125200 1100 126300 Rent Expense 40000 40000 Utilities Expense 19700 19700 Miscellaneous Expense 5400 5400 Supplies Expense 17900 17900 Insurance Expense 5700 5700 Depreciation Expense 6500 6500 Totals 475000 475000 31200 31200 482600 482600

Statement of Income For the period ending 30.6.2018 Laundry Revenue 232200 Less: Wages Expense 126300 40000 Rent Expense Utilities Expense 19700 Miscellaneous Expense 5400 Supplies Expense 17900 Insurance Expense 5700 Depreciation Expense 6500221500 Net Income 10700 Statement of Retained Earnings For the period ending 30.6.2018 Beginning Bal. 65600 Net Income 10700 76300 Dividends -10000 66300

Balance sheet As at 30.6.2018 Amounts in $ Amounts in $ Liabilities Amounts in $ Amounts in $ Assets Current Liabilities Current Assets Accounts Payable Cash 11000 11800 Laundry Supplies Wages Payable 12900 3600 1100 Prepaid Insurance 3900 18500 Shareholders Equity Non Current Assets Laundry Equipment Accum. Depre -Equip 232600 Common Stock 40000 100700 Retained Earnings -131900 66300 106300 Total Liabilities & Equity Total 1192 11920 0