On February 1, Loving Laurie decided to rent some of the unoccupied space in her building....

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On February 1, Loving Laurie decided to rent some of the unoccupied space in her building. She received $11,544 from Happy Henry for 3 months rent. On February 1, Loving Laurie decided to replace her washers and dryers. At the end of last month, she sold off all of her equipment. Many of the machines were breaking down and she was getting tired of customer complaints. She purchased 73 washers and 68 dryers from Barney's Bargain Barn. Each washer cost $1,223 and each dryer cost $905. She made a down payment of $43,210 and put the remaining balance on account. All account balances must be fully paid within 3 months. The washers and dryers have an expected life 5.5 years, a salvage value of $17,697, and will be fially depreciated using the straight-line method. On February 2, Loving Laurie noticed she needed some extra supplies. She purchased $4,475 worth of supplies on account from Danny's Discount Depot. On February 4, Loving Laurie shovel's in the revenues...literally!! She empties all of her quarters, dimes, and nickels from the washers and dryers into buckets. She loves counting coins and counted a total of 22,777 quarters, 16,304 dimes, 7,541 nickels, and 15,130 pennies!! On February 6, Loving Laurie decided to buy the land next to her business since it was so cheap. She paid $10,846 for the land. She plans on using the land for additional parking space during peak washing times! On February 7, Loving Laurie received cash from some of her clients who had put their washing and drying fees on account last month. She received a total of $239 from her customers. On February 10, Loving Laurie hires Joyful Jenny. She thought she would be great for business since she is full of joy!! Her duties will include assisting customers and cleaning the machines. It is expected that she will work 45 hours this month at a rate of $10.40 an hour. On February 13, Loving Laurie emptics her machines and counts her coins. She counted 11,046 quarters, 6,319 dimes, 4,014 nickels, and 12,090 pennies. Laurie also allows some of her customers to pay later if they like. She uses her magic key to start the machines for these particular customers. All customers must pay their balance owed within 30 days. Laurie needs to recognize additional revenues of $1,008 on account. (Note: All of this information can be recognized in a single transaction) On February 14, Loving Laurie contacted Loan Shark Sally about obtaining a loan. Barney's Bargain Barn needed $88,800 of the balance due from Laurie. Therefore, Laurie got a loan from Sally in the amount of $88.800 to pay off some of her balance. The loan will be paid off in 6 equal installments due August 14 and February 14 for each of the next 3 years. Sally will charge 32% interest on the loan. Interest will be paid with each installment. (Note: there are two transactions occurring here, first recognize the loan and then pay your liability). On February 17, Loving Laurie paid Awesome Ad's $833 for flyers to hang around town. The flyers contain information about Laurie's new machines and are expected to increase her revenues by a whopping 55.77% within a year. Laurie expenses this immediately. 11. On February 19, Loving Laurie decided to pay dividends of $1,727 to stockholders. 12. On February 20, Loving Laurie empties her machines. She counted a total of $3,915 in coins! 13. On February 21, Loving Laurie decided she needed a vacation. She put signs up letting customers know that the Laundromat will be closed until February 23rd. She expects to lose 5,333 quarters, 2,017 dimes, 1,546 nickels, and 1,775 pennies worth of business during this time. 14. On February 23, Loving Laurie realized she made a mistake. When she last recognized revenues, she accidentally recorded 444 quarters, 134 dimes, 27 nickels, and 125 pennies that came out of her purse and not the machines. Laurie needs to correct this mistake ASAP!! 15. On February 25, Loving Laurie pays Joyful Jenny $484 cash for her excellent work. Congratulations to Jenny as she earned the prestigious "Loving Laurie's Laundry Employee of the Month Award." 16. On February 27, Loving Laurie counted her coins & tallied up her revenues from customers that owed her money. She needs to recognize 29,755 quarters, 8,541 dimes, 14,242 nickels, 37,505 pennies, as well as, $1,141 from customers who put their washing & drying fees on account. Adjustments On February 28, you notice the following: a) You have used up one months worth of insurance (On September 1, Laurie purchased a 9- month insurance policy for $6,903). b) You need to recognize depreciation on the equipment (washers and dryers). (c) You have earned one months worth of rent d) You have only $1,743 worth of supplies on hand. e) You need to recognize interest accumulated on the loan. f) You need to recognize depreciation for the month on a building you bought on August 1", 2021. It has an expected life of 35 years, a $315,315 salvage value, and you use straight- line depreciation. See chart of accounts for cost information. g) You have accrued salaries of $1,160. b) You need to recognize/accrue federal income taxes of 28%. Round to the nearest dollar if needed. Hint: compute adjusted income based on all preceding information, and then determine and record income tax expense The Accounting Cycle 1) Analyze business transactions 2) Journalize the transactions 3) Post to ledger accounts 4) Prepare a trial balance 5) Journalize and post adjusting entries 6) Prepare an adjusted trial balance 7) Prepare the financial statements (I/S, Stmt of RE, B/S) 8) Journalize and post closing entries 9) Prepare a post-closing trial balance Loving Laurie needs your help! She really dislikes accounting and doesn't know what to do. A couple of days ago, she heard a rumor that you were an accounting wiz. Shc hurried back to her Laundromat, picked up the phone, and called you in for an interview. Laurie was so impressed that she decided to hire you on the spot. She has told you to do the following: • Colored Journal Entries from steps 2, 5, and 8 of the accounting cycle • Colored Ledger Accounts (T-Accounts) from steps 3, 5, and 8 of the accounting cycle A Completed Worksheet in color for steps 4, 5, and 6 of the accounting cycle ● Colored Financial Statements. This should include a statement of operations, a statement of retained earnings, and a classified statement of financial position • A post-closing trial balance in color Additional things to consider: • Only 1 T-Account needs to be created for each account. See Chart of Accounts. Please Note: Laurie has been in business for a while, therefore, your Ledger accounts (T-Accounts) may already have balances in them. ● • When doing journal entries, remember that debits come before credits and that both must equal. • Remember, each time you post to the ledger account, you should put the reference number in your general journal. • Assume the year is 2023 for your transactions and financial statements. • Round all amounts to the nearest dollar if needed. ● Do not procrastinate; it will only make things harder on you!! ● Create a T-Account for all accounts listed below. Don't forget to put them in color!!! Loving Laurie's Laundry Corporation Chart of Accounts Ledger # 101 102 103 104 105 106 107 108 109 201 202 203 204 205 206 301 302 303 401 402 501 502 503 504 505 506 507 508 Account ASSETS Cash Accounts Receivable Supplies Prepaid Insurance Land Building Accum. Depr.- Building Equipment Accum. Depr. - Equipment LIABILITIES Accounts Payable Notes Payable Salaries Payable Interest Payable Unearned Rent Revenue Income Tax Payable OWNER'S EQUITY Common Stock Retained Earnings Dividends REVENUES Laundromat Revenues Rent Revenues EXPENSES Advertising Expense Depr. Expense - Building Depr. Expense - Equipment Income Tax Expense Insurance Expense Interest Expense Salaries Expense Supplies Expense January 31st Balance SSSSSSSSS $ $ $ $ $ $ $ $ SSSSSS $ $ 555 $ SS $ $ $ SSSSSSSS $ $ 57,023 317 1,045 3,068 44,244 361,935 1,998 2,345 335,443 127,846 **** On February 1, Loving Laurie decided to rent some of the unoccupied space in her building. She received $11,544 from Happy Henry for 3 months rent. On February 1, Loving Laurie decided to replace her washers and dryers. At the end of last month, she sold off all of her equipment. Many of the machines were breaking down and she was getting tired of customer complaints. She purchased 73 washers and 68 dryers from Barney's Bargain Barn. Each washer cost $1,223 and each dryer cost $905. She made a down payment of $43,210 and put the remaining balance on account. All account balances must be fully paid within 3 months. The washers and dryers have an expected life 5.5 years, a salvage value of $17,697, and will be fially depreciated using the straight-line method. On February 2, Loving Laurie noticed she needed some extra supplies. She purchased $4,475 worth of supplies on account from Danny's Discount Depot. On February 4, Loving Laurie shovel's in the revenues...literally!! She empties all of her quarters, dimes, and nickels from the washers and dryers into buckets. She loves counting coins and counted a total of 22,777 quarters, 16,304 dimes, 7,541 nickels, and 15,130 pennies!! On February 6, Loving Laurie decided to buy the land next to her business since it was so cheap. She paid $10,846 for the land. She plans on using the land for additional parking space during peak washing times! On February 7, Loving Laurie received cash from some of her clients who had put their washing and drying fees on account last month. She received a total of $239 from her customers. On February 10, Loving Laurie hires Joyful Jenny. She thought she would be great for business since she is full of joy!! Her duties will include assisting customers and cleaning the machines. It is expected that she will work 45 hours this month at a rate of $10.40 an hour. On February 13, Loving Laurie emptics her machines and counts her coins. She counted 11,046 quarters, 6,319 dimes, 4,014 nickels, and 12,090 pennies. Laurie also allows some of her customers to pay later if they like. She uses her magic key to start the machines for these particular customers. All customers must pay their balance owed within 30 days. Laurie needs to recognize additional revenues of $1,008 on account. (Note: All of this information can be recognized in a single transaction) On February 14, Loving Laurie contacted Loan Shark Sally about obtaining a loan. Barney's Bargain Barn needed $88,800 of the balance due from Laurie. Therefore, Laurie got a loan from Sally in the amount of $88.800 to pay off some of her balance. The loan will be paid off in 6 equal installments due August 14 and February 14 for each of the next 3 years. Sally will charge 32% interest on the loan. Interest will be paid with each installment. (Note: there are two transactions occurring here, first recognize the loan and then pay your liability). On February 17, Loving Laurie paid Awesome Ad's $833 for flyers to hang around town. The flyers contain information about Laurie's new machines and are expected to increase her revenues by a whopping 55.77% within a year. Laurie expenses this immediately. 11. On February 19, Loving Laurie decided to pay dividends of $1,727 to stockholders. 12. On February 20, Loving Laurie empties her machines. She counted a total of $3,915 in coins! 13. On February 21, Loving Laurie decided she needed a vacation. She put signs up letting customers know that the Laundromat will be closed until February 23rd. She expects to lose 5,333 quarters, 2,017 dimes, 1,546 nickels, and 1,775 pennies worth of business during this time. 14. On February 23, Loving Laurie realized she made a mistake. When she last recognized revenues, she accidentally recorded 444 quarters, 134 dimes, 27 nickels, and 125 pennies that came out of her purse and not the machines. Laurie needs to correct this mistake ASAP!! 15. On February 25, Loving Laurie pays Joyful Jenny $484 cash for her excellent work. Congratulations to Jenny as she earned the prestigious "Loving Laurie's Laundry Employee of the Month Award." 16. On February 27, Loving Laurie counted her coins & tallied up her revenues from customers that owed her money. She needs to recognize 29,755 quarters, 8,541 dimes, 14,242 nickels, 37,505 pennies, as well as, $1,141 from customers who put their washing & drying fees on account. Adjustments On February 28, you notice the following: a) You have used up one months worth of insurance (On September 1, Laurie purchased a 9- month insurance policy for $6,903). b) You need to recognize depreciation on the equipment (washers and dryers). (c) You have earned one months worth of rent d) You have only $1,743 worth of supplies on hand. e) You need to recognize interest accumulated on the loan. f) You need to recognize depreciation for the month on a building you bought on August 1", 2021. It has an expected life of 35 years, a $315,315 salvage value, and you use straight- line depreciation. See chart of accounts for cost information. g) You have accrued salaries of $1,160. b) You need to recognize/accrue federal income taxes of 28%. Round to the nearest dollar if needed. Hint: compute adjusted income based on all preceding information, and then determine and record income tax expense The Accounting Cycle 1) Analyze business transactions 2) Journalize the transactions 3) Post to ledger accounts 4) Prepare a trial balance 5) Journalize and post adjusting entries 6) Prepare an adjusted trial balance 7) Prepare the financial statements (I/S, Stmt of RE, B/S) 8) Journalize and post closing entries 9) Prepare a post-closing trial balance Loving Laurie needs your help! She really dislikes accounting and doesn't know what to do. A couple of days ago, she heard a rumor that you were an accounting wiz. Shc hurried back to her Laundromat, picked up the phone, and called you in for an interview. Laurie was so impressed that she decided to hire you on the spot. She has told you to do the following: • Colored Journal Entries from steps 2, 5, and 8 of the accounting cycle • Colored Ledger Accounts (T-Accounts) from steps 3, 5, and 8 of the accounting cycle A Completed Worksheet in color for steps 4, 5, and 6 of the accounting cycle ● Colored Financial Statements. This should include a statement of operations, a statement of retained earnings, and a classified statement of financial position • A post-closing trial balance in color Additional things to consider: • Only 1 T-Account needs to be created for each account. See Chart of Accounts. Please Note: Laurie has been in business for a while, therefore, your Ledger accounts (T-Accounts) may already have balances in them. ● • When doing journal entries, remember that debits come before credits and that both must equal. • Remember, each time you post to the ledger account, you should put the reference number in your general journal. • Assume the year is 2023 for your transactions and financial statements. • Round all amounts to the nearest dollar if needed. ● Do not procrastinate; it will only make things harder on you!! ● Create a T-Account for all accounts listed below. Don't forget to put them in color!!! Loving Laurie's Laundry Corporation Chart of Accounts Ledger # 101 102 103 104 105 106 107 108 109 201 202 203 204 205 206 301 302 303 401 402 501 502 503 504 505 506 507 508 Account ASSETS Cash Accounts Receivable Supplies Prepaid Insurance Land Building Accum. Depr.- Building Equipment Accum. Depr. - Equipment LIABILITIES Accounts Payable Notes Payable Salaries Payable Interest Payable Unearned Rent Revenue Income Tax Payable OWNER'S EQUITY Common Stock Retained Earnings Dividends REVENUES Laundromat Revenues Rent Revenues EXPENSES Advertising Expense Depr. Expense - Building Depr. Expense - Equipment Income Tax Expense Insurance Expense Interest Expense Salaries Expense Supplies Expense January 31st Balance SSSSSSSSS $ $ $ $ $ $ $ $ SSSSSS $ $ 555 $ SS $ $ $ SSSSSSSS $ $ 57,023 317 1,045 3,068 44,244 361,935 1,998 2,345 335,443 127,846 ****

Answer rating: 100% (QA)

Calculations for the transactions on February 128 February 1 Rent Revenue Happy Henry paid 11544 for 3 months rent Recognize 1 months rent of 3848 Dr Cash 3848 Cr Rent Revenue 3848 Purchased 73 washer... View the full answer