The unadjusted trial balance of Ocean Breeze Laundromat at April 30, 2010, the end of the current fiscal year, is shown below.

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

a. Laundry supplies on hand at April 30 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 April 30 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 “April 30 Bal.” In addition, add T accounts for Wages Payable, Depreciation Expense, Laundry Supplies Expense, Insurance Expense, and Income Summary.

2. Optional: Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet. Add the accounts listed in part (1) as needed.

3. Journalize and post the adjusting entries. Identify the adjustments by “Adj.” and the new balances as “Adj. Bal.”

4. Prepare an adjusted trial balance.

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

6. Journalize and post the closing entries. Identify the closing entries by “Clos.”

7. Prepare a post-closing trial balance.

Transcribed Image Text:

Ocean Breeze Laundromat Unadjusted Trial Balance April 30, 2010 Debit Credit Balances Balances 11,000 18,900 8,600 284,000 Cash Laundry Supplies Prepaid Insurance Laundry Equipment. Accumulated Depreciation Accounts Payable Deanna Beaven, Capital Deanna Beaven, Drawing 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