Obj. 3 P 3-6 Adjustment Process and Financial Statements Adjustment data for Ms. Ellen's Laundry Inc....

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Obj. 3 P 3-6 Adjustment Process and Financial Statements Adjustment data for Ms. Ellen's Laundry Inc. for the year ended December 31, 20Y8, 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 Insurance premiums expired, $4,600 Instructions 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. Financial Statement Effects BALANCE SHEET Assets Laundry Prepaid + Stockholders' Equity Laundry Acc. Accts. Wages Common Retained Cash + Supplies + Insurance + Equip. Depr. Payable + Payable + Stock + Earnings Liabilities Unadjusted Balances Dec. 31, 2018 53,000 9,000 6,000 250,000 (65,000) 7,000 50,000 196,000 STATEMENT OF CASH FLOWS INCOME STATEMENT Operating (Revenues) 275,000 Laundry revenue 275,000 Financing (Common Stock) 25,000 Wages expense (110,000) Operating (Expenses) (200,000) Rent expense (30,000) Investing (Equipment) (50,000) Utilities expense (18,000) Financing (Dividends) (15,000) Misc. expense (7,500) Net increase in cash 35,000 Beginning cash bal., Jan. 1, 2018 18,000 Ending cash bal., Dec. 31, 20Y8 53,000 Obj. 3 P 3-6 Adjustment Process and Financial Statements Adjustment data for Ms. Ellen's Laundry Inc. for the year ended December 31, 20Y8, 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 Insurance premiums expired, $4,600 Instructions 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. Financial Statement Effects BALANCE SHEET Assets Laundry Prepaid + Stockholders' Equity Laundry Acc. Accts. Wages Common Retained Cash + Supplies + Insurance + Equip. Depr. Payable + Payable + Stock + Earnings Liabilities Unadjusted Balances Dec. 31, 2018 53,000 9,000 6,000 250,000 (65,000) 7,000 50,000 196,000 STATEMENT OF CASH FLOWS INCOME STATEMENT Operating (Revenues) 275,000 Laundry revenue 275,000 Financing (Common Stock) 25,000 Wages expense (110,000) Operating (Expenses) (200,000) Rent expense (30,000) Investing (Equipment) (50,000) Utilities expense (18,000) Financing (Dividends) (15,000) Misc. expense (7,500) Net increase in cash 35,000 Beginning cash bal., Jan. 1, 2018 18,000 Ending cash bal., Dec. 31, 20Y8 53,000