Adjustment data for Ms. Ellens Laundry Inc. for the year ended December 31, 2013, are as follows:

Adjustment data for Ms. Ellen’s Laundry Inc. for the year ended December 31, 2013, are as follows:

a. Wages accrued but not paid at December 31, $2,150

b. Depreciation of equipment during the year, $12,500

c. Laundry supplies on hand at December 31, $1,500

d. Insurance premiums expired, $4,600

Instruction

1. Using the following integrated financial statement framework, record each adjustment to the appropriate accounts, identifying each adjustment by its letter. After all adjustments are recorded, determine the balances.

2. Prepare an income statement and retained earnings statement for the year ended December 31, 2013. The retained earnings balance as of January 1, 2013, was $101,500.
3. Prepare a classified balance sheet as of December 31, 2013.
4. Prepare a statement of cash flows for the year ended December 31,2013.

Transcribed Image Text:

Balance Sheet Income Statement Assets Cash Flows Laundry Prepaid Laundry Acc Cash + Supplies Accts. Wages Capital + Insuranc, t Equp." Depr. #Payable+ Payable+ Stock Retained Earnings Balances, Dec 31, 2013 53,000 9,000 ,000 250,000 -65,000 7,000 50,000 196,000 Statement of Cash Flows Income Statement 275,000 25,000 -200,000 -50,000 -15,000 35,000 Beginning cash bal, Jan. 1, 2013 18,000 Ending cash bal, Dec. 31, 2013 $53,000 Laundry revenue Wages expense Rent expense Utilities expense Misc expense 275,000 -110,000 30,000 -18,000 -7,500 Financing (Capital Stock) Operating (Expenses) Financing (Dividends) Net increase in cash