The unadjusted trial balance of Ocean Breeze Laundromat at December 31, 2015, is shown below.

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

a. Laundry supplies on hand at December 31 are $4,000.

b. Insurance premiums expired during the year are $5,200.

c. Depreciation of equipment during the year is $6,000.

d. Wages accrued but not paid at December 31 are $1,100.

Requirements:

1. For each account listed in the unadjusted trial balance, enter the balance in a T account. Identify the balance as €œDecember 31 Bal.€ In addition, add T accounts for Wages Payable, Amortization Expense, Laundry Supplies Expense, Insurance Expense, and Income Summary.

2. Journalize and post the adjusting entries. Identify the adjustments by €œAdj.€ and the new balances as €œAdj. Bal.€

3. Prepare an adjusted trial balance.

4. Prepare an income statement, a statement of owner€™s equity (no additional investments were made during the year), and a balance sheet.

5. Journalize and post the closing entries. Identify the closing entries by €œClos.€

6. Make a post-closing trial balance.

Transcribed Image Text:

Ocean Breeze Laundromat Unadjusted Trial Balance December 31, 2015 Debit Balances Credit Balances 11,000 18.900 8.600 284,000 Cash Laundry Supplies. Prepaid Insurance. Laundry Equipment.. Accumulated Depreciation Laundry Equipment.. Accounts Payable.... Deanna Beaven, Capital.. Deanna Beaven, Withdrawals Laundry Revenue. Wages Expense. Rent Expense. Utilities Expense.... Miscellaneous Expense 150,400 9,800 107,600 8,400 232,200 104,000 39,300 20,400 5, 400 500, 000 500,000