The unadjusted trial balance of Surf Suds Laundry at October 31, 2010, the end of the current fiscal year, is shown below.

The data needed to determine year-end adjustments are as follows:
a. Wages accrued but not paid at October 31 are $1,250.
b. Depreciation of equipment during the year is $9,500.
c. Laundry supplies on hand at October 31 are $2,900.
d. Insurance premiums expired during the year are $6,000.
Instructions

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

2. 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:

Surf Suds Laundry Unadjusted Trial Balance October 31, 2010 Debit Balances Credit Balances Cash Laundry Supplies Prepaid Insurance Laundry Equipment . Accumulated Depreciation Accounts Payable Hilda Dinero, Capital Hilda Dinero, Drawing Laundry Revenue Wages Expense Rent Expense Utilities Expense Miscellaneous Expense 4,350 11,250 7,200 163,500 61,500 9,300 56,700 3,000 247,500 107,250 54,000 20,400 4,050 375,000 375,000