Tom knew that accounting was based on accruals and some adjustments were needed at the endThe following information is provided to prepare the adjusting entries at the end of September 20
Reminder: The comprehensive cases build off of one another. Check Comp Case 1 for the rest of t
September 30
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
Recognize the rent expense for the month of September.
Cleaning equipment is depreciated for 5 years. The salvage value is zero. The company uses straig
The truck is depreciated for 5 years. The salvage value is $6,000. The company uses straight line d
Recognize the insurance expense for the month of September.
Recognize the revenue from 1 month service that has been provided to a client from September 2
At the end of September, the company has $6,500 supplies available.
The company pays $2,000 salary every Friday. September 30 is Monday.
The company has provided a $5,000 service to a client that has not been billed.
Required:
1.0
2.0
3.0
4.0
5.0
Prepare the adjusting entries.
Post the adjustments to the General Ledger.
Calculate the adjusted balances for the affected accounts.
Prepare the Adjusted Trial Balance for Wayzata Cleaning, Inc. at September 31, 2023.
Prepare the Financial Statements for Wayzata Cleaning, Inc. ending and on September 31, 2023.
Date
September
30 Rent Expense
Prepaid Rent
Account
Dr
$
2,000.00
30 Depreciation Expense
Accumulated Depreciation – Cleaning Eqp
$
250.00
30 Depreciation Expense
Accumulated Depreciation – Truck
$
200.00
30 Insurance Expense
Prepaid Insurance
$
115.00
30 Unearned Service Revenue
Service Revenue
$
1,000.00
30 Supplies Expense
Supplies
$
2,500.00
30 Salary Expense
Salary Payable
$
400.00
30 Accounts Receivable
Service Revenue
$
5,000.00
$
15,000.00
15,000.00
5.00
3,000.00
250.00
Depreciation – Cleaning Equipment
Cost
Salvage Value
Depreciated value
Useful life
Annual Depreciation
Monthly depreciation
Depreciation – Truck
Cost
Salvage Value
Depreciated value
Useful life
18,000.00
6,000.00
12,000.00
5.00
Annual Depreciation
Monthly depreciation
$
2,400.00
200.00
Cr
$
Prepaid Insurance
1,380.00
115.00
1,265.00
Supplies
9,000.00
2,500.00
6,500.00
Truck
18,000.00
18,000.00
2,000.00
$
250.00
$
200.00
$
115.00
$
1,000.00
$
Cash
52,220.00
52,220.00
2,500.00
$
400.00
$
5,000.00
Accounts Receivable
500.00
5,000.00
5,500.00
Insurance Expense
115.00
115.00
Depreciation Expense
250.00
200.00
450.00
Accounts Payable
17,600.00
17,600.00
Rent Expense
2,000.00
2,000.00
Acc Dep – Eqp
250.00
250.00
Supplies Expense
2,500.00
2,500.00
Beginning balances for the accounts (see trial balance from compre
Created by the adjusting entries.
Prepaid Rent
12,000.00
2,000.00
10,000.00
C/S
Cleaning Equipment
15,000.00
15,000.00
Unearned Service Revenue
1,000.00
9,500.00
8,500.00
Dividends
1,500.00
1,500.00
Acc Dep – Truck
200.00
200.00
Salary Payable
400.00
400.00
trial balance from comprehensive case one).
80,000.00
80,000.00
Salary Expense
8,000.00
400.00
8,400.00
Utility Expense
500.00
500.00
Service Revenue
11,000.00
1,000.00
5,000.00
17,000.00
Wayzata Cleaning
Adjusted Trial Balance
September 30, 2023
Cash
Accounts Receivable
Supplies
Prepaid Rent
Prepaid Insurance
Cleaning Equipment
Accumulated Depreciation – Cleaning Eqp
Truck
Accumulated Depreciation – Truck
Accounts Payable
Salary Payable
Unearned Service Revenue
Common Stock
Dividends
Service Revenue
Utility Expense
Salary Expense
Rent Expense
Depreciation Expense
Insurance Expense
Supplies Expense
Total
Debit
52,220.00
5,500.00
6,500.00
10,000.00
1,265.00
15,000.00
Credit
250.00
18,000.00
200.00
17,600.00
400.00
8,500.00
80,000.00
1,500.00
17,000.00
500.00
8,400.00
2,000.00
450.00
115.00
2,500.00
123,950.00
123,950.00
Wayzata Cleaning, Inc.
Income Statement
For the Month Ended September 30, 2023
Service Revenue
Expenses:
Utility Expense
Salary Expense
Rent Expense
Depreciation Expense
Insurance Expense
Supplies Expense
Total Expenses
Net Income
$
17,000.00
$
$
$
$
$
$
$
$
500.00
8,400.00
2,000.00
450.00
115.00
2,500.00
13,965.00
3,035.00
Wayzata Cleaning, Inc.
Statement of Retained Earnings
For the Month Ended September 30, 2023
Beginning Retained Earnings
Net Income
Total
Dividends
Ending Retained Earnings
$
$
$
$
$
Assets
Total Assets
3,035.00
3,035.00
1,500.00
1,535.00
Wayzata Cleaning, Inc.
Balance Sheet
September 30, 2023
Assets
Cash
Accounts Receivable
Supplies
Prepaid Rent
Prepaid Insurance
Total CA
Cleaning Equipment
Accumulated Depreciation – Eqp
Truck
Accumulated Depreciation – Truck
Total FA
Total Assets
Liabilities
$
$
$
$
$
$
15,000.00
(250.00) $
18,000.00
(200.00) $
$
$
52,220.00
5,500.00
6,500.00
10,000.00
1,265.00
75,485.00
Equity
14,750.00
17,800.00
32,550.00
108,035.00
Total Debt + Equity
ng, Inc.
eet
2023
Liabilities
Account Payables
Salary Payable
Unearned Service Revenue
Total Current Liabilities
$
$
$
17,600.00
400.00
8,500.00
26,500.00
Equity
Common Stock
Retained Earnings
Total Equity
$
$
$
80,000.00
1,535.00
81,535.00
Total Debt + Equity
$
108,035.00
Required:
1.0
2.0
3.0
4.0
5.0
6.0
Use your adjusted trial balance from Comprehensive Case 2 and prepare the following to enter Octo
Close the revenue account.
Close the expense accounts.
Close income summary.
Close the dividend account.
Fill out general ledger to calculate the ending retained earnings balance.
Prepare the post-closing trial balance.
Date
Account
Dr
Cr
Service Revenue
Utility Expense
Depreciation Expense
Insurance Expense
Income Summary
Retained Earnings
Salary Expense
Rent Expense
Supplies Expense
Dividends
Wayzata Cleaning, Inc.
Post-Closing Trial Balance
September 30, 2023
Debit
Total
Credit
–
–
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
