Question

The unadjusted trial balance of Epicenter Laundry is included on end-of-year spreadsheet for the fiscal year that ended June 30,2019 The data needed to determine year end adjustments are as follows: a. Laundry supplies on hand at June 30, 2019 $3,600. b. Insurance premiums expired at June 30, 2019 $5,700. c. Depreciation of laundry equipment during the year $6,500. d. Wages accrued but not paid ay June 30 $ 1,100. Instructions: 1. Complete the end-of-year spreadsheet for Epicenter Laundry. 2. Journalize the adjusting entries. 3. Prepare an income statement, statement of owner's equit and balance sheet from the adjusted trial balance.

Answer 1

HERE YOU HAVE EVERYTHING YOU NEED. HOPE THIS HELPS YOU OUT!

	UNADJUSTED TRIAL BALANCE					ADJUSTMENTS			ADJUSTED TRIAL BALANCE
		DEBIT BALANCES		CREDIT BALANCES		DEBIT BALANCES		CREDIT BALANCES		DEBIT BALANCES		CREDIT BALANCES
CASH		11,000.00								11,000.00
LAUNDRY SUPPLIES		21,500.00						3,600.00		17,900.00
PREPAID INSURANCE		9,600.00						5,700.00		3,900.00
LAUNDRY EQUIPMENT		232,600.00								232,600.00
ACCUMULATED DEPRECIATION				125,400.00				6,500.00				131,900.00
ACCOUNTS PAYABLE				11,800.00								11,800.00
WAGES PAYABLE								1,100.00				1,100.00
SOPHIE PEREZ, CAPITAL				105,600.00								105,600.00
SOPHIE PEREZ, DRAWING		10,000.00								10,000.00
LAUNDRY REVENUE				232,200.00								232,200.00
WAGES EXPENSE		125,200.00				1,100.00				126,300.00
LAUNDRY SUPPLIES EXPENSE						3,600.00				3,600.00
RENT EXPENSE		40,000.00								40,000.00
UTILITIES EXPENSE		19,700.00								19,700.00
DEPRECIATION EXPENSE-EQUIPMENT						6,500.00				6,500.00
INSURANCE EXPENSE						5,700.00				5,700.00
MISCELLANEOUS EXPENSE		5,400.00								5,400.00
TOTALS		475,000.00		475,000.00		16,900.00		16,900.00		482,600.00		482,600.00

ADJUSTING ENTRIES
DATE	ACCOUNT	DEBIT	CREDIT
june 30, 2019	laundry supplies expense	3600
	laundry supplies		3600
june 30, 2019	Insurance expense	5700
	prepaid insurance		5700
june 30, 2019	Depreciation equipment expense	6500
	Accumulated depreciation		6500
june 30,2019	wages expense	1100
	wages payable		1100

EPICENTER LAUNDRY
INCOME STATEMENT
JUNE 30, 2019
LAUNDRY REVENUE				232,200.00
EXPENSES:
WAGES EXPENSE		126,300.00
LAUNDRY SUPPLIES EXPENSE		3,600.00
RENT EXPENSE		40,000.00
UTILITIES EXPENSE		19,700.00
DEPRECIATION EXPENSE-EQUIPMENT		6,500.00
INSURANCE EXPENSE		5,700.00
MISCELLANEOUS EXPENSE		5,400.00
TOTAL EXPENSES		207,200.00		207,200.00
NET INCOME				25,000.00

EPICENTER LAUNDRY
STATEMENT OF OWNERS EQUITY
JUNE 30, 2019
SOPHIE PEREZ, CAPITAL					105,600.00
NET INCOME				25,000.00
ADITIONAL INVESTMENTS				-
SOPHIE PEREZ, DRAWING				10,000.00
INCREASE ON OWNERS EQUITY					15,000.00
SOPHIE PEREZ, CAPITAL ON JUNE 30, 2019					120,600.00

EPICENTER LAUNDRY
BALANCE SHEET
JUNE 30, 2019
CASH		11,000.00
LAUNDRY SUPPLIES		17,900.00
PREPAID INSURANCE		3,900.00
LAUNDRY EQUIPMENT		232,600.00
ACCUMULATED DEPRECIATION		(131,900.00)
TOTAL ASSETS				133,500.00
ACCOUNTS PAYABLE		11,800.00
WAGES PAYABLE		1,100.00
SOPHIE PEREZ, CAPITAL		120,600.00
TOTAL LIABILITIES AND CAPITAL				133,500.00