INTRODUCTION:

Adjusting entries are necessary to report accurate/correct amount to users of financial information.

GENERAL INSTRUCTIONS:
1 Prepare the adjusting entries for Mr. J Laundry Service (REFER TO ACTIVITY 4)
2 Additional information are given below as the basis of adjustments.
3 Observe proper indention and provide short explanation for the entries.
Example:
12/31/2020 Depreciation expense
Accumulated depreciation-Transpo Equipment
To record depreciation from _____ to _________.
4 Update the T-accounts in the General Ledger sheet. Add the adjusting entries that you made.
Use color blue and bold font for the added adjusting entries.
Example:
Acc. Depr.-Xxxx Equipment
4,333.33

- 4,333.33
-

ADDITIONAL INFORMATION FOR MR. J LAUNDRY SERVICES

1 The following are the useful life of the following assets:
Assets Useful life Salvage value
Invested laundry equipment 5 years 2,000.00
Invested furniture and fixtures 5 years 1,500.00
Bought dryers and spinners 5 years -
Delivery vehicle 10 years 100,000.00
2 The year-end inventory shows the following amount.
Assets Amount still unused
Office supplies 1,200.00
Laundry supplies 8,000.00
3 The 200,000 loan from the bank is payable after 1 year with an annual interest rate of 8%.
4 The note receivable from customer will earn 360 per month.
5 Type the adjusting entries in the "Adjusting Entries" columns (DEBIT or CREDIT) in the "Adjusted T
Compare the updated balances in the General Ledger and in the Adjusted Trial Balance.
Balances should be equal.

CRITERIA
Completeness and Accuracy
 (Adjusting entries are complete with correct amounts)
Formatting
(Strictly followed the required format)
Punctuality
(Submitted on time)
TOTAL
nancial information.

xxxxx
xxxxx

hat you made.

rate of 8%.

T) in the "Adjusted Trial Balance Sheet" and see how the balances are updated in "Adjusted Trial Balance" columns.
15

10

5
30
Adjusted Trial Balance" columns.
Mr. J Laundry Services
CHART OF ACCOUNTS

Code Account Name

101 Cash
102 Accounts receivable
103 Notes receivable
104 Interest receivable
105 Laundry supplies
106 Office supplies
107 Prepaid rent
108 Laundry equipment
118 Accumulated depreciation-Laundry equipment
109 Furniture and fixtures
119 Accumulated depreciation-Furniture and fixtures
110 Delivery vehicle
120 Accumulated depreciation-Delivery vehicle
201 Accounts payable
202 Notes payable
203 Uneared income
204 Loan payable
205 Mortgage payable
206 Interest payable
301 Mr. J, Capital
302 Mr. J, Drawing
401 Laundry service income
402 Interest income
501 Wages expense
502 Utilires expense
503 Insurance expense
504 Repairs expense
505 Supplies expense
 Mr. J Laundry Services
GENERAL JOURNAL

For the month of December

Date Account Titles/Particulars Ref.

Depreciation Expense - Laundry Equipment
Accumulated Depreciation - Laundry Equipment

Depreciation Expense - Furnitures & Fixtures

Accumulated Depreciation - Furnitures & Fixtures

Depreciation Expense - Laundry Equipment

Accumulated Depreciation - Laundry Equipment

Depreciation Expense - Delivery Vehicle

Accumulated Depreciation - Delivery Vehicle

Supplies Expense
Office Supplies
To record the used portion of office supplies

Supplies Expense
Laundry Supplies
To record the used portion of laundry supplies

Interest Receivable
Interest Income

Cash
Interest Income
 Totals

Prepared by:
Checked by:
___________________
_____________________
 No. 2

Debit Credit
2,200.00
2,200.00

1,400.00
1,400.00

8,000.00
8,000.00

128,750.00
128,750.00

3,000.00
3,000.00

9,000.00
9,000.00

16,000.00
16,000.00

1,080.00
1,080.00
 169,430.00 169,430.00

Approved by:

_____________________
Mr. J Laundry Services
GENERAL LEDGER

As of the month of December

Cash Office Suplies

120,000.00 12,000.00 4,200.00

117,000.00 200,000.00
200,000.00 37,500.00
90,000.00 8,000.00
70,200.00 20,000.00

597,200.00 277,500.00 4,200.00 -

319,700.00 4,200.00

Accounts Receivable Laundry Equipment

78,000.00 70,200.00 35,000.00
126,000.00 40,000.00

204,000.00 70,200.00 75,000.00 -

133,800.00 75,000.00

Notes Receivable Acc. Depr.-Laundry Equipment

54,000.00
54,000.00 - - -
54,000.00

Laundry Supplies Furniture and Fixture

5,000.00 22,500.00
12,000.00

17,000.00 - 22,500.00 -
17,000.00 22,500.00

Acc. Depr.-Furniture and Fixture

- -

Delivery Vehicle
5,250,000.00
 5,250,000.00 -
5,250,000.00

Acc. Depr.-Delivery vehicle

- -
Accounts Payable Laundry service income

28,000.00 195,000.00
4,000.00 180,000.00

- 32,000.00 - 375,000.00
32,000.00 375,000.00

Unearned income Wages expense

90,000.00 20,000.00

- 90,000.00 20,000.00 -
90,000.00 20,000.00

Loan payable Utilities expense

200,000.00 34,000.00
5,050,000.00
 - 5,250,000.00 34,000.00 -
5,250,000.00 34,000.00

Interest payable Repairs expense

3,500.00

- - 3,500.00 -
- 3,500.00

Mr. J, Capital Supplies expense

186,700.00

- 186,700.00 -
186,700.00 -
 Mr. J Laundry Services
Adjusted Trial Balance
as of December 31, 2020

Unadjusted Trial Balance

Account name Debit

Cash 319,700.00
Accounts receivable 133,800.00
Notes receivable 54,000.00
Interest receivable -
Laundry supplies 17,000.00
Office supplies 4,200.00
Prepaid rent -
Laundry equipment 75,000.00
Accumulated depreciation- Laundry equipment

Furniture and fixtures 22,500.00

Accumulated depreciation- Furniture and fixtures
Delivery Vehicle 5,250,000.00
Accumulated depreciation- Delivery vehicle
Accounts payable
Notes payable
Uneared income
Loan payable
Mortgage payable
Mr. J, Capital
Mr. J, Drawing
Laundry service income
Interest income

Wages expense 20,000.00

Utilires expense 34,000.00
Insurance expense
Repairs Expense 3,500.00
Supplies Expense

Depreciation Expense - Laundry Equipment

Depreciation Expense - Furniture & Fixtures
Depreciation Expense - Delivery Vehicle
Totals 5,933,700.00
 Mr. J Laundry Services
Adjusted Trial Balance
as of December 31, 2020

nadjusted Trial Balance Adjusting entries Adjusted Trial Balance

Credit Debit Credit Debit

1,080.00 320,780.00
133,800.00
54,000.00
16,000.00 16,000.00
9,000.00 8,000.00
3,000.00 1,200.00
-
75,000.00
2,200.00
8,000.00
22,500.00
1,400.00
5,250,000.00
128,750.00
32,000.00
-
90,000.00
5,250,000.00
-
186,700.00
-
375,000.00
- 16,000.00
1,080.00
20,000.00
34,000.00
- -
3,500.00
3,000.00 3,000.00
9,000.00 9,000.00
2,200.00 2,200.00
 8,000.00 8,000.00
1,400.00 1,400.00
128,750.00 128,750.00
5,933,700.00 5,938,780.00
###
- 152,350.00
Adjusted Trial Balance

Credit

2,200.00
8,000.00

1,400.00

128,750.00
32,000.00
-
90,000.00
5,250,000.00
-
186,700.00
-
375,000.00
16,000.00
1,080.00
6,091,130.00