Accounting Equation Journalise Adjustment Entries Homework Help
- November 29, 2017
- Posted by:
- Category: Accounting
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Rowland Company is a small editorial services company owned and operated by Marlene Rowland. On August 31, 2016, the end of the current year, Rowland Company’s accounting clerk prepared the following unadjusted trial balance:
Rowland CompanyUNADJUSTED TRIAL BALANCEAugust 31, 2016
ACCOUNT TITLE | DEBIT | CREDIT | |
1 | Cash | 7,420.00 | |
2 | Accounts Receivable | 38,115.00 | |
3 | Prepaid Insurance | 7,050.00 | |
4 | Supplies | 1,630.00 | |
5 | Land | 114,550.00 | |
6 | Building | 150,250.00 | |
7 | Accumulated Depreciation-Building | 88,800.00 | |
8 | Equipment | 133,200.00 | |
9 | Accumulated Depreciation-Equipment | 96,605.00 | |
10 | Accounts Payable | 12,560.00 | |
11 | Unearned Rent | 7,035.00 | |
12 | Common Stock | 74,980.00 | |
13 | Retained Earnings | 142,235.00 | |
14 | Dividends | 15,055.00 | |
15 | Fees Earned | 327,900.00 | |
16 | Salaries and Wages Expense | 194,870.00 | |
17 | Utilities Expense | 42,345.00 | |
18 | Advertising Expense | 22,335.00 | |
19 | Repairs Expense | 17,690.00 | |
20 | Miscellaneous Expense | 5,605.00 | |
21 | Totals | 750,115.00 | 750,115.00 |
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The data needed to determine year-end adjustments are as follows:
a. Unexpired insurance at August 31, $6,000.
b. Supplies on hand at August 31, $480.
c. Depreciation of building for the year, $7,500.
d. Depreciation of equipment for the year, $4,150.
e. Rent unearned at August 31, $1,550.
f. Accrued salaries and wages at August 31, $3,200.
g. Fees earned but unbilled on August 31, $11,330.
Instructions
1. Journalize the adjusting entries using the following additional accounts:
Salaries and Wages Payable;
Rent Revenue;
Insurance Expense;
Depreciation Expense—Building;
Depreciation Expense—Equipment;
and Supplies Expense.
2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance.
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