Question

Pitman company is a small editorial services company owned and operated by Jan Pitman. On October 31, 2019 the end of the current year, Pitman Company's accounting clerk prepared the following on adjusted trial balance:

eBook Calculator Print Item Instructions Pitman Company UNADJUSTED TRIAL BALANCE October 31, 2019 ACCOUNT TITLE CREDIT 1 Cash DEBIT 7,420.00 38,360.00 2 3 • Accounts Receivable Prepaid Insurance Supplies 7,320.00 2,390.00 5 Land 6 Building 117,000.00 154,900.00 85,745.00 7 Accumulated Depreciation-Building & Equipment . Accumulated Depreciation Equipment 10 Accounts Payable 130,900.00 97,550.00 11,735.00 11 Uneamed Rent 7,130.00 227,645.00 12 Jan Pitman, Capital 15 Jan Pitman, Drawing 14 Fees Earned 14,705.00 325,550.00 15 Salaries and Wages Expense 193,870.00 16 Utilities Expense 42,220.00 17 Advertising Expense 18 Repairs Expense 22,740.00 17,455.00 6,075.00 755,355.00 19 Miscellaneous Expense 20 Totals 755,355.00

2.) Determine The balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance

Answer 1

	Date	Adjusting entries	Post ref	Debit ($)	Credit ($)	Assets	Balance as on 31-10-2019	Liabilities	Balance as on 31-10-2019	Equity
a	31-10-2019	Insurance Expense A/c		1770		Prepaid insurance **	5850
		To prepaid Insurance A/c			1770		(7320-5850)
		( Being Insurance expired for the year)
b	31-10-2019	Supplies Expense A/c		2080		Supplies ***	310
		To supplies a/c			2080		(2390-2080)
		( being supplies consumed)
c	31-10-2019	Depreciation Expense - Building A/c		7750
		To accumlated depreciation - building			7750	Accumulated dep (85745+7750) ****	93295
		( being depreciation expense amortised for the year)
d	31-10-2019	Depreciation Expense - Equipment A/c		4220		Equipment	130900
		To accumlated depreciation - Equipment			4220	Less accumulated dep (97550+4220) *****	101770
		( being depreciation expense amortised for the year)					29130
e	31-10-2019	Unearned Rent A/c		5635				Unearned rent ******	1495
		To rent Revenue			5635			(7130 - 5635)
		( being rent on revenue earned and recozised as income)
f	31-10-2019	salaries and wages Expense A/c		3040				salary payable*******	3040
		To Salaries And wages payable A/c			3040
		( being accured salaries and wages )
g	31-10-2019	Accounts Recievable A/c		11185		Account receivable *	49545
		To fees earned			11185	(38360+11185)
		( being Fees Earned but not received)

B) adjusting Trail Balance after adjusting entries

Particulars	Debit	Credit	working
Cash	7420
Account Receivable*	49545		refer statement 1
prepaid Insurance **	5850		refer statement 1
Supplies ***	310		refer statement 1
Land	117000
Building	154900
Accumalted Depreciation- building ****		93295	refer statement 1
Equipment	130900
Accumalted Depreciation- equipment *****		101770	refer statement 1
Account payable		11735
Unearned Rent ******		1495	refer statement 1
Salary Payable *******		3040
Pit man capital		227645
Pit man drawing	14705
fees earned		336735	=325550+11185
salaries & wages expense	196910		=193870+3040
utlities expense	42220
advertising expense	22740
repair expense	17455
Miscellaneous Expense	6075
Rent revenue		5635	from statement 1
insurance expense	1770
Supplies Expense	2080
Depreciation expense - building	7750
Depreciation Expense - equipment	4220
total	781350	781350