Question

1. Pitman Company is a small editorial services company owned and operated by Jan Pitman. On October 31 2010 end of the current year, Pitman Company's accounting clerk prepared the following unadjusted trial balance Pitman Company Unadjusted Trial Balance October 31, 2019 Debit Credit Balances Balances Cash 4,220 Accounts Receivable 38,300 Prepaid Insurance 7,140 Supplies 1,950 Land 112,630 Building 283,170 Accumulated Depreciation-Building 137,620 Equipment 135,350 Accumulated Depreciation-Equipment 98,020 Accounts Payable 12,010 Unearned Rent 6,820 Jan Pitman, Capital 300,700 Jan Pitman, Drawing 14,930 Fees Earned 324,570 Salaries and Wages Expense 193,440 Utilities Expense 42,520 Advertising Expense 22,720 Repairs Expense 17,200 Miscellaneous Expense 6,170 879,740 879,740 The data needed to determine year-end adjustments are as follows: Unexpired insurance at October 31, $4,780. Supplies on hand at October 31, $590. Depreciation of building for the year, $3,170. Depreciation of equipment for the year, $2,740. Unearned rent at October 31, $1,770. Accrued salaries and wages at October 31, $3,100. Fees earned but unbilled on October 31, $18,180. • 1. Enter the unadjusted balances into t-accounts and then enter the adjustments 2. Calculate the new balances and prepare an adjusted trial balance. 3. Using the adjusted trail balance, complete a set of financial statements. 4. Prepare closing entries.

Answer 1

Prepaid Insurance 7140 Insurance Expense 2360 2360 4780 2360 Supplies Supplies expense 1360 1950 1360 590 1360 Depreciation expense -Building 3170 Accumulated Depreciation - Building 137620 3170 140790 3170 Depreciation expense-Equipment 2740 Accumulated Depreciation -Equipment 98020 2740 100760 2740 Rent Revenue Unearned Rent 5050 6820 5050 1770 5050

Salaries & Wages Payable 3100 Salaries and Wages expense 193440 3100 196540 3100 Fees Earned Accounts Receivable 38300 18180 56480 324570 18180 342750

Pitman Company Adjusted Trial Balance October 31,2019 4220 56480 4780 590 112630 283170 140790 135350 Cash Accounts Receivable Prepaid Insurance Supplies Land Building Accumulated Depreciation - Building Equipment Accumulated Depreciation - Equipment Accounts Payable Salaries & Wages Payable Unearned Rent Jan Pitman, Capital Jan Pitman, Drawings Fees Earned Rent Revenue Salaries & Wages Expense Utilities expense Advertising expense Repairs Expense Insurance expense Supplies expense 100760 12010 3100 1770 300700 14930 342750 5050 196540 42520 22720 17200 2360 1360 99

100 101 102 103 104 Depreciation expense -Building Depreciation expense -Equipment Miscellaneous Expense Total 3170 2740 6170 906930 906930