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8.
Given the following adjusted trial balance for Lou’s Laundry and Dry Cleaning. Prepare the
Income Statement, Statement of Retained Earnings, and Balance Sheet.
Lou’s Laundry and Dry Cleaning, Inc.
Adjusted Trial Balance
January 31, 2006
Cash
27,470
Accounts Receivable
2,000
Supplies
600
Prepaid Insurance
3,000
Prepaid Advertising
1,600
Equipment
16,200
Accumulated Depreciation – equipment
270
Accounts Payable
650
Notes Payable
6,000
Unearned Laundry Revenue
75
Wages Payable
340
Capital Stock
30,000
Dividends
2,140
Dry Cleaning Revenue
16,760
Laundry Revenue
7,315
Wages expense
2,580
Rent expense
1,000
Insurance expense
600
Supplies expense
2,400
Utilities expense
750
Advertising expense
800
Depreciation expense – equipment
270
61,410
66,410
Lou’s Laundry and Dry Cleaning
Income Statement
month ended January 31, 2006
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Lou’s Laundry and Dry Cleaning
Retained Earnings Statement
month ended January 31, 2006
Lou’s Laundry and Dry Cleaning
Balance Sheet
January 31, 2006
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228 ♦ Chapter 4
9. Part A
In the general journal, prepare the closing entries for Lou’s Laundry and Dry Cleaning given the
following ledger balances. Post these entries to the ledger.
CASH
ACCOUNTS RECEIVABLE
1/2
30,000
1/3
16,200
1/12
1,300
1/31
2,800
1/2
6,000
1/4
1,000
1/31
2,700
1/8
150
1/4
3,600
Bal.
1,200
1/12
5,400
1/5
2,400
1/31
800
1/31
13,800
1/12
1,120
Bal.
2,000
1/31
2,800
1/15
2,600
1/28
1,120
SUPPLIES
1/31
500
1/3
3,000
1/31
2,400
1/31
2,140
Bal.
600
Bal.
27,470
PREPAID INSURANCE
PREPAID ADVERTISING
1/4
3,600
1/31
600
1/5
2,400
1/31
800
Bal.
3,000
Bal.
1,600
EQUIPMENT
ACCUMULATED DEPREC-EQUIP
1/3
16,200
1/31
270
ACCOUNTS PAYABLE
NOTES PAYABLE
1/15
2,600
1/3
3,000
1/2
6,000
1/31
250
Bal.
650
UNEARNED WASHING REVENUE
WAGES PAYABLE
1/31
75
1/8
150
1/31
340
Bal.
75
CAPITAL STOCK
1/2
30,000
RETAINED EARNINGS
DIVIDENDS
1/31
13,045
1/31
24,075
1/31
2,140
0
1/31
2,140
Bal.
2,140
Bal.
8,890
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DRY CLEANING REVENUE
LAUNDRY REVENUE
1/12
4,700
1/12
2,000
1/31
11,500
1/31
5,000
Bal.
16,200
Bal.
7,000
1/31
560
1/31
240
Bal.
16,760
1/31
75
Bal.
7,315
.
0
WAGES EXPENSE
RENT EXPENSE
1/12
1/4
1,000
0
1/28
Bal.
1,000
Bal.
1/31
Bal.
INSURANCE EXPENSE
SUPPLIES EXPENSE
1/31
1/31
2,400
0
Bal.
Bal.
2,400
Bal.
Bal.
UTILITIES EXPENSE
ADVERTISING EXPENSE
1/31
1/31
800
0
1/31
Bal.
800
Bal.
DEPREC EXPENSE-EQUIP
1/31
0
Bal.
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General Journal
Date
Description
Debit
Credit
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Part B
Use the ending balances in the ledger accounts from Part A to prepare the following post-closing
trial balance.
Lou’s Laundry and Dry Cleaning, Inc.
Post-closing Trial Balance
January 31, 2006
1/2
1/3
1/12
1/31
1/2
1/4
1/31
1/8
1/4
1/12
1/5
1/31
1/31
1/12
1/31
1/15
1/31
1/3
1/31
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