Prob. 4–3A
1, 3, 6.
Cash
Oct.
31 Bal.
1,450
Laundry Supplies
Oct.
31 Bal.
3,750 Oct. 31 Adj.
31 Adj. Bal.
2,800
950
Prepaid Insurance
Oct.
31 Bal.
2,400 Oct. 31 Adj.
31 Adj. Bal.
2,000
400
Laundry Equipment
Oct.
31 Bal.
54,500
Accumulated Depreciation
Oct. 31 Bal.
20,500
31 Adj.
2,900
31 Adj. Bal.
23,400
Accounts Payable
Oct. 31 Bal.
3,100
Wages Payable
Oct. 31 Adj.
600
Hilda Dinero, Capital
Oct.
31 Clos.
1,000 Oct. 31 Bal.
18,900
_____
31 Clos.
12,300
31 Bal.
30,200
Hilda Dinero, Drawing
Oct.
31 Bal.
1,000 Oct. 31 Clos.
1,000
187
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resold, copied, or distributed without the prior consent of the publisher.
Prob. 4–3A
Continued
Income Summary
Oct.
31 Clos.
70,200 Oct. 31 Clos.
31 Clos.
12,300
82,500
Laundry Revenue
Oct.
31 Clos.
82,500 Oct. 31 Bal.
82,500
Wages Expense
Oct.
31 Bal.
35,750 Oct. 31 Clos.
31 Adj.
600
31 Adj. Bal.
36,350
______
36,350
Rent Expense
Oct.
31 Bal.
18,000 Oct. 31 Clos.
18,000
Utilities Expense
Oct.
31 Bal.
6,800 Oct. 31 Clos.
6,800
Depreciation Expense
Oct.
31 Adj.
2,900 Oct. 31 Clos.
2,900
Laundry Supplies Expense
Oct.
31 Adj.
2,800 Oct. 31 Clos.
2,800
Insurance Expense
Oct.
31 Adj.
2,000 Oct. 31 Clos.
2,000
Miscellaneous Expense
Oct.
31 Bal.
1,350 Oct. 31 Clos.
1,350
188
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resold, copied, or distributed without the prior consent of the publisher.
Prob. 4–3A
Continued
2. Optional (Appendix)
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
Account Title
Cash
Laundry Supplies
Prepaid Insurance
Laundry Equipment
Accum. Depreciation
Accounts Payable
Wages Payable
Hilda Dinero, Capital
Hilda Dinero, Drawing
Laundry Revenue
Wages Expense
Rent Expense
Utilities Expense
Depreciation Expense
Laundry Supp. Expense
Insurance Expense
Misc. Expense
B
C
D
E
F
G
SURF SUDS LAUNDRY
End-of-Period Spreadsheet (Work Sheet)
For the Year Ended October 31, 2010
Unadjusted
Adjusted
Trial Balance
Adjustments
Trial Balance
H
Dr.
1,450
3,750
2,400
54,500
Dr.
Cr.
Dr.
Cr.
(c) 2,800
(d) 2,000
20,500
3,100
Dr.
1,450
950
400
54,500
(b) 2,900
18,900
Cr.
82,500
b) 2,900
(c) 2,800
(d) 2,000
_______
125,000
8,300
8,300
Net income
Balance
Sheet
Dr.
1,450
950
400
54,500
36,350
18,000
6,800
2,900
2,800
2,000
1,350
128,500
Cr.
1,000
82,500
(a) 600
K
23,400
3,100
600
18,900
1,000
35,750
18,000
6,800
1,350
125,000
Income
Statement
J
23,400
3,100
600
18,900
(a) 600
1,000
Cr.
I
128,500
82,500
36,350
18,000
6,800
2,900
2,800
2,000
1,350
70,200
12,300
82,500
82,500
______
82,500
58,300
______
58,300
46,000
12,300
58,300
189
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Prob. 4–3A
Continued
3.
Adjusting Entries
2010
Oct. 31
31
31
31
Wages Expense .................................................
Wages Payable .............................................
Accrued wages.
600
Depreciation Expense .......................................
Accumulated Depreciation ..........................
Equipment depreciation.
2,900
Laundry Supplies Expense...............................
Laundry Supplies .........................................
Supplies used ($3,750 – $950).
2,800
Insurance Expense............................................
Prepaid Insurance ........................................
Insurance expired.
2,000
600
2,900
2,800
2,000
4.
SURF SUDS LAUNDRY
Adjusted Trial Balance
October 31, 2010
Debit
Credit
Balances Balances
Cash ......................................................................................
Laundry Supplies .................................................................
Prepaid Insurance ................................................................
Laundry Equipment..............................................................
Accumulated Depreciation ..................................................
Accounts Payable ................................................................
Wages Payable .....................................................................
Hilda Dinero, Capital ............................................................
Hilda Dinero, Drawing..........................................................
Laundry Revenue .................................................................
Wages Expense....................................................................
Rent Expense .......................................................................
Utilities Expense ..................................................................
Depreciation Expense..........................................................
Laundry Supplies Expense .................................................
Insurance Expense ..............................................................
Miscellaneous Expense .......................................................
1,450
950
400
54,500
23,400
3,100
600
18,900
1,000
82,500
36,350
18,000
6,800
2,900
2,800
2,000
1,350
128,500
128,500
190
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resold, copied, or distributed without the prior consent of the publisher.
Prob. 4–3A
Continued
5.
SURF SUDS LAUNDRY
Income Statement
For the Year Ended October 31, 2010
Laundry revenue ................................................................
Expenses:
Wages expense ...........................................................
Rent expense...............................................................
Utilities expense..........................................................
Depreciation expense .................................................
Laundry supplies expense .........................................
Insurance expense......................................................
Miscellaneous expense ..............................................
Total expenses ........................................................
Net income..........................................................................
$ 82,500
$36,350
18,000
6,800
2,900
2,800
2,000
1,350
70,200
$ 12,300
SURF SUDS LAUNDRY
Statement of Owner’s Equity
For the Year Ended October 31, 2010
Hilda Dinero, capital, November 1, 2009 ..........................
Net income for the year .....................................................
Less withdrawals ...............................................................
Increase in owner’s equity ................................................
Hilda Dinero, capital, October 31, 2010 ............................
$ 18,900
$ 12,300
1,000
11,300
$ 30,200
SURF SUDS LAUNDRY
Balance Sheet
October 31, 2010
Assets
Liabilities
Current assets:
Cash........................... $ 1,450
Laundry supplies ......
950
Prepaid insurance ....
400
Total current assets
$ 2,800
Property, plant, and
equipment:
Laundry equipment .. $ 54,500
Less accum. depr. .... 23,400
Total property, plant,
and equipment.....
31,100
Total assets .................
$ 33,900
Current liabilities:
Accounts payable ... $3,100
Wages payable........
600
Total liabilities ...........
$ 3,700
Owner’s Equity
Hilda Dinero, capital..
Total liabilities and
owner’s equity ........
30,200
$ 33,900
191
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resold, copied, or distributed without the prior consent of the publisher.
Prob. 4–3A
Concluded
6.
Closing Entries
2010
Oct. 31
31
31
31
Laundry Revenue ..............................................
Income Summary .........................................
82,500
Income Summary...............................................
Wages Expense............................................
Rent Expense ...............................................
Utilities Expense ..........................................
Miscellaneous Expense...............................
Depreciation Expense..................................
Laundry Supplies Expense .........................
Insurance Expense ......................................
70,200
Income Summary...............................................
Hilda Dinero, Capital ....................................
12,300
Hilda Dinero, Capital .........................................
Hilda Dinero, Drawing..................................
1,000
82,500
36,350
18,000
6,800
1,350
2,900
2,800
2,000
12,300
1,000
7.
SURF SUDS LAUNDRY
Post-Closing Trial Balance
October 31, 2010
Debit
Credit
Balances Balances
Cash ......................................................................................
Laundry Supplies .................................................................
Prepaid Insurance ................................................................
Laundry Equipment..............................................................
Accumulated Depreciation ..................................................
Accounts Payable ................................................................
Wages Payable .....................................................................
Hilda Dinero, Capital ............................................................
1,450
950
400
54,500
57,300
23,400
3,100
600
30,200
57,300
192
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