The accountant for Eva’s Laundry prepared the following unadjusted and adjusted trial balances….


Question Description:

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Adjusting entries from trial balances The accountant for Eva’s Laundry prepared the following unadjusted and adjusted trial balances. Assume that all balances in the unadjusted trial balance and the amounts of the adjustments are correct. Identify the errors in the accountant’s adjusting entries, assuming that none of the accounts were affected by more than one adjusting entry. Eva’s Laundry Trial Balances May 31, 2014 Eva’s Laundry Trial Balances May 31, 2014 Eva’s Laundry Trial Balances May 31, 2014 Eva’s Laundry Trial Balances May 31, 2014 Eva’s Laundry Trial Balances May 31, 2014 Unadjusted Unadjusted Adjusted Debit Balances Credit Balances Debit Balances Credit Balances Cash . 7,500 7,500 Accounts Receivable . 18,250 23,250 Laundry Supplies 3,750 6,750 Prepaid Insurance* 5,200 1,600 Laundry Equipment . . 190,000 177,000 Accumulated Depreciation—Laundry Accumulated Depreciation—Laundry 48,000 48,000 Accounts Payable Accounts Payable 9,600 9,600 Wages Payable Wages Payable Wages Payable Wages Payable 1,000 Capital Stock . . Capital Stock . . 35,000 35,000 Retained Earnings Retained Earnings 75,300 75,300 Dividends Dividends Dividends 28,775 Laundry Revenue Laundry Revenue 182,100 182,100 Wages Expense 49,200 49,200 Rent Expense . . 25,575 25,575 Utilities Expense . 18,500 18,500 Depreciation Expense Depreciation Expense Depreciation Expense 13,000 Laundry Supplies Expense Laundry Supplies Expense Laundry Supplies Expense 3,000 Insurance Expense Insurance Expense Insurance Expense 600 Miscellaneous Expense . 3,250 3,250 350,000 350,000 358,000 351,000

Answer

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