Question

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.
Instructions
1. For each account listed in the unadjusted trial balance, enter the balance in a T account. Identify the balance as “December 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 “Adj.” and the new balances as “Adj. 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 “Clos.”
6. Prepare a post-closing trial balance.


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  • CreatedSeptember 15, 2015
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