At the end of its fiscal year, Dickens Cleaners, Inc., had the following trial balance:

The following information is also available:

a. A study of the company’s insurance policies shows that $1,360 is unexpired at the end of the year.

b. An inventory of cleaning supplies shows $2,300 on hand.

c. Estimated depreciation on the building for the year is $25,600.

d. Accrued interest on the mortgage payable is $2,000.

e. On September 1, the company signed a contract, effective immediately, with Kings County Hospital to dry-clean, for a fixed monthly charge of $850, the uniforms used by doctors in surgery. The hospital paid for four months’ service in advance.

f. The company pays sales and delivery wages on Saturday. The weekly payroll is $6,120. September 30 falls on a Thursday, and the company has a six-day pay week.

g. Estimated federal income taxes for the period are $4,600.

REQUIRED

All adjustments affect one balance sheet account and one income statement account. For each of the above situations, show the accounts affected, the amount of the adjustment (using a + or – to indicate an increase or a decrease, respectively), and the balance of the account after the adjustment in the following format:

Transcribed Image Text:

Dickens Cleaners, Inc. Trial Balance September 30, 2011 $ 23,576 Cash Accounts Receivable 52,988 Prepaid Insurance Cleaning Supplies Land 6,800 14,748 36,000 Building Accumulated Depreciation-Building Accounts Payable Unearned Cleaning Revenue Mortgage Payable 372,000 $ 91,200 36,800 3,400 220,000 Common Stock 80,000 33,120 Retained Earnings Dividends 18,000 Cleaning Revenue Wages Expense Cleaning Equipment Rental Expense Delivery Truck Expense Interest Expense Other Expenses 319,268 202,660 12,200 8,748 22,000 14,068 $783,788 $783,788