
Concept explainers
Income: $27,350
accounts,
The unadjusted
The data needed to determine >ear-end adjustments are as follows:
(a) Wages accrued but not paid at August 31 are $2,200.
(b)
(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. 51 Bal.” In addition, add T accounts for Wages Payable. Depreciation Expense, Laundry Supplies Expense, and Insurance Expense.
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 stockholders’ equity, and a
6. Journalize and
7. Prepare a post-closing trial balance.

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Chapter 4 Solutions
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