Financial Accounting
14th Edition
ISBN: 9781305088436
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 4, Problem 3PB
The unadjusted
The data needed to determine year-end adjustments are as follows:
- a. Wages accrued but not paid at August 31 are $2,200.
- b.
Depreciation of equipment during the year is $8,150. - c. Laundry supplies on hand at August 31 are $2,000.
- d. Insurance premiums expired during the year are $5,300.
Instructions
- 1. For each account listed in the unadjusted trial balance, enter the balance in a T account. Identify the balance as “Aug. 31 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 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.
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Chapter 4 Solutions
Financial Accounting
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