the unadjusted trial balance of launderland at november 30 2012 the end of the curre 551330

PR 4-3A T accounts, adjusting entries, financial statements, and closing entries; optional end-of-period spreadsheet (work sheet)

The unadjusted trial balance of Launderland at November 30, 2012, 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 November 30 are $5,000.

b. Insurance premiums expired during the year are $6,400.

c. Depreciation of equipment during the year is $7,000.

d. Wages accrued but not paid at November 30 are $1,500.

Instructions

1. For each account listed in the unadjusted trial balance, enter the balance in a T account. Identify the balance as “November 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.