Question

3 and 4 question

1. Pitman Company is a small editorial services company owned and operated by Jan Pitman. On October 31, 2016 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

Pittman  Company
Adjusted Trial Balance
ACCOUNT TITLE	Debit	Credit
Cash	$4,220	$ -
Accounts Receivable	$56,480	$ -
Prepaid Insurance	$4,780	$ -
Supplies	$590	$ -
Land	$112,630	$ -
Building	$283,170	$ -
Accumulated Depreciation-Building	$ -	140790
Equipment	$135,350	$ -
Accumulated Depreciation-Equipment	$ -	100760
Accounts Payable	$ -	12010
Unearned Rent	$ -	1770
Jan Pitman, Capital	$ -	300700
Jan Pitman, Drawing	$14,930	$ -
Salaries and Wages Payable	$ -	3100
Fees Earned	$ -	342750
Rent Revenue	$ -	5050
Salaries and Wages Expense	$196,540	$ -
Utilities Expense	$42,520	$ -
Advertising Expense	$22,720	$ -
Repairs Expense	$17,200	$ -
Insurance Expense	$2,360	$ -
Supplies Expesnes	$1,360	$ -
Depreciation Expense—Building	$3,170	$ -
Depreciation Expense-Equipment	$2,740	$ -
Miscellaneous Expense	$6,170	$ -
Totals	$906,930	906930
Pittman  Company
Income Statement
For the Year ended October 31, 2019
Fees Earned	342750
Rent Revenue	5050
Total Revenue		347800
Less: Expenses
Salaries and Wages Expense	$196,540
Utilities Expense	$42,520
Advertising Expense	$22,720
Repairs Expense	$17,200
Insurance Expense	$2,360
Supplies Expesnes	$1,360
Depreciation Expense—Building	$3,170
Depreciation Expense-Equipment	$2,740
Miscellaneous Expense	$6,170
Total Expenses		$294,780
Net Income		$53,020
PittMan  Company
Blalance sheet
31-Oct-19
Assets
Cash		$     4,220.00
Accounts Receivable		$   56,480.00
Prepaid Insurance		$     4,780.00
Supplies		$        590.00
Land		$ 112,630.00
Building	$  283,170.00
Accumulated Depreciation-Building	$ (140,790.00)	$ 142,380.00
Equipment	$  135,350.00
Accumulated Depreciation-Equipment	$ (100,760.00)	$   34,590.00
Total Assets		$ 355,670.00
Liabilities & owner's capital
Accounts Payable	$    12,010.00
Unearned Rent	$      1,770.00
Salaries and Wages Payable	$      3,100.00
Total Liabilities		$   16,880.00
Owner's capital
Jan Pitman, Capital	$  300,700.00
Jan Pitman, Drawing	($14,930)
Add: Net income	$53,020
Total owner's Capital		$ 338,790.00
Total liabilities & Owner's Capital		$ 355,670.00
4) Closing Entries
Account titles & Explanation	Debit	Credit
Revenue	347,800
Income summary		347,800
Income Summary	$294,780
Salaries and Wages Expense		$196,540
Utilities Expense		$42,520
Advertising Expense		$22,720
Repairs Expense		$17,200
Insurance Expense		$2,360
Supplies Expesnes		$1,360
Depreciation Expense—Building		$3,170
Depreciation Expense-Equipment		$2,740
Miscellaneous Expense		$6,170
Income Summary	$53,020
Retained Earnings		$53,020

1 Trial Balance CREDIT 3 ACCOUNT TITLE 4 Cash 5 Accounts Receivable 6 Prepaid Insurance 7 Supplies 8 Land 9 Building 10 Accumulated Depreciation-Building 11 Equipment 12 Accumulated Depreciation-Equipment 13 Accounts Payable Unadjusted DEBIT $4,220 $38,300 $7,140 $1,950 $112,630 $283,170 $137,620 $135,350 14 Unearned Re $98,020 $12,010 $6,820 $300,700 Adjustment Adjusted DEBIT CREDIT DEBIT CREDIT $4,220 $ - $18,180 $56,480 $ ($2,360) $4,780 $ ($1,360) $590 $- $112,630 $ $283,170 $ - $3,170 $- $140,790 $135,350 $ $2,740 $ $100,760 $12,010 ($5,050) $- $1,770 $- $300,700 $14,930 $- $3,100 $- $3,100 $18,180 $- $342,750 $5,050 $- $5,050 $3,100 $196,540 $ $42,520 $- $22,720 $ - $17,200 $ $2,360 $2,360 $ - $1,360 $1,360 $ - $3,170 $3,170 $- $2,740 $2,740 $- $6,170 $- $27,190 $27,190 $906,930 $906,930 $14,930 15 Jan Pitman, Capital 16 Jan Pitman, Drawing 17 Salaries and Wages Payable 18 Fees Earned 19 Rent Revenue 20 Salaries and Wages Expense 21 Utilities Expense 22 Advertising Expense 23 Repairs Expense 24 Insurance Expense 25 Supplies Expesnes 26 Depreciation Expenseâ€"Building 27 Depreciation Expense-Equipment 28 Miscellaneous Expense 29 Totals $324,570 $193,440 $42,520 $22,720 $17,200 $6,170 $879,740 $879,740