Problem

1
PROFIT ASSETS LIABILITIES CAPITAL
1 Advertising Expense 27,500
OVER OVER NO OVER
Prepaid Advertising 27,500
2 Interest Expense 56,000
OVER NO UNDER OVER
Interest Payable 56,000
3 Depreciation Expense 13,333
OVER OVER NO OVER
Accumulated Depreciation 13,333
4 Accounts Receivable 4,320
UNDER UNDER NO UNDER
Laundry Revenue 4,320
5 Unearned Laundry Revenue 24,500
UNDER NO OVER UNDER
Laundry Revenue 24,500

Problem 2
a Salaries Expense 9,000
Salaries Payable 9,000
b Salaries Expense 12,000
Salaries Payable 12,000

Problem 3
a 3,375.00
b Supplies Expense 3,375
Supplies 3,375

Problem 4
a 3,500.00
b 700.00
c Prepaid Insurance 3,500
Insurance Expense 3,500

Problem 5
a 49,170.00
b 172,510.00