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
1	Cash	11,000.00
2	Laundry Supplies	21,500.00
3	Prepaid Insurance	9,600.00
4	Laundry Equipment	232,600.00
5	Accumulated 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
15	Totals	475,000.00	475,000.00

The data needed to determine year-end adjustments are as follows:

A.	Laundry supplies on hand at June 30 are $3,600.
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 on 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.
	1. For each account listed in the unadjusted trial balance, enter the balance in a T account. Identify the balance as “Bal.”
	2. 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.
	3. a. Journalize the adjusting entries on page 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.)
	4. Prepare an adjusted trial balance.
	5. a. Prepare an income statement for the year ended June 30, 2018. If a net loss has been incurred, enter that amount as 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 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 entries other than account names.
	5. 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 as a 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 to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names.
	5. c. Prepare a balance sheet as 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 entries other than account names. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
	6. a. Journalize the closing entries on page 11 of the journal. Refer to the Chart of Accounts for exact wording of account titles. (Note: Complete the adjusted trial balance, the income statement, the retained earnings statement, and the balance sheet BEFORE completing part 6. a.)
	6. b. Post the closing entries. In the T accounts, identify the closing entries by “Clos.” (Be sure to add a posting reference to the journal.)
	7. Prepare a post-closing trial balance.

Chart of Accounts

CHART OF ACCOUNTS

Epicenter Laundry

General Ledger

	ASSETS
11	Cash
13	Laundry Supplies
14	Prepaid Insurance
17	Laundry Equipment
18	Accumulated Depreciation

	LIABILITIES
21	Accounts Payable
22	Wages Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends
34	Income Summary

	REVENUE
41	Laundry Revenue

	EXPENSES
51	Wages Expense
52	Rent Expense
53	Utilities Expense
54	Laundry Supplies Expense
55	Depreciation Expense
56	Insurance Expense
59	Miscellaneous Expense

Labels and Amount Descriptions

Labels
Current assets
Current liabilities
Expenses
For the Year Ended June 30, 2018
June 30, 2018
Property, plant, and equipment
Amount Descriptions
Change in retained earnings
Net income
Net loss
Retained earnings, June 30, 2018
Retained earnings, July 1, 2017
Total assets
Total current assets
Total expenses
Total liabilities
Total liabilities and stockholders’ equity
Total property, plant, and equipment
Total stockholders’ equity

T Accounts

Note:	Download the SPREADSHEET , 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.
1.	For each account listed in the unadjusted trial balance, enter the balance in a T account. Identify the balance as “Bal.”
3. b.	Post the adjusting entries. In the T accounts, identify the adjustments by “Adj.” and the new balances as “Adj. Bal.”
6. b.	Post the closing entries. In the T accounts, identify the adjustments by “Clos.”

Work Sheet

2. 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.

Journal

3. a. Journalize the adjusting entries on page 10 of the journal. Adjusting entries are recorded on June 30. Refer to the Chart of Accounts for exact wording of account titles. 6. a. Journalize the closing entries on page 11 of the journal. Refer to the Chart of Accounts for exact wording of account titles. (Note: Complete the adjusted trial balance, the income statement, the retained earnings statement, and the balance sheet BEFORE completing part 6. a.)

PAGE 10PAGE 11

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Adjusting Entries
2
3
4
5
6
7
8
9

Adjusted Trial Balance

4. Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank.

Epicenter Laundry

ADJUSTED TRIAL BALANCE

June 30, 2018

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Laundry Supplies
3	Prepaid Insurance
4	Laundry Equipment
5	Accumulated Depreciation
6	Accounts Payable
7	Wages Payable
8	Common Stock
9	Retained Earnings
10	Dividends
11	Laundry Revenue
12	Wages Expense
13	Rent Expense
14	Utilities Expense
15	Laundry Supplies Expense
16	Depreciation Expense
17	Insurance Expense
18	Miscellaneous Expense
19	Totals

Income Statement

5. a. Prepare an income statement for the year ended June 30, 2018. If a net loss has been incurred, enter that amount as 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 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 entries other than account names.

Epicenter Laundry

Income Statement

1
2
3
4
5
6
7
8
9
10
11

Retained Earnings Statement

5. 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 as a 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 to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names.

Epicenter Laundry

Retained Earnings Statement

1
2
3
4
5

Balance Sheet

5. c. Prepare a balance sheet as 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 entries other than account names. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Epicenter Laundry

Balance Sheet

1	Assets
2
3
4
5
6
7
8
9
10
11
12	Liabilities
13
14
15
16
17	Stockholders’ Equity
18
19
20
21

Post-closing Trial Balance

7. Prepare a post-closing trial balance.

Epicenter Laundry

POST-CLOSING TRIAL BALANCE

June 30, 2018

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Laundry Supplies
3	Prepaid Insurance
4	Laundry Equipment
5	Accumulated Depreciation
6	Accounts Payable
7	Wages Payable
8	Common Stock
9	Retained Earnings
10	Totals

Answer rating: 100% (QA)

1 Adjusting Entries Epicenter Laundry Adjusting Entries Date Accounts Title Debit Credit Jun 30 Laundry Supplies Expense 17900 Laundry Supplies 17900 To record laundry supplies utilized 26500 8600 Jun ... View the full answer