Question

of Debit 420,300 ERAL LEDGER PR 3-5B Adjusting entries and adjusted trial balances Obj. 2, 3, 4, 5, 6 Reece Financial Services Co., which specializes in appliance repair services, is owned and oper- ated by Joni Reece. Reece Financial Services' accounting clerk prepared the following unadjusted trial balance at July 31, 2018: Reece Financial Services Co. Unadjusted Trial Balance July 31, 2018 Debit Credit Balances Balances Cash 10,200 Accounts Receivable. 34,750 Prepaid Insurance 6,000 Supplies 1,725 Land 50,000 Building 155,750 Accumulated Depreciation-Building. 62,850 Equipment.... 45,000 Accumulated Depreciation-Equipment. 17,650 Accounts Payable 3,750 Unearned Rent 3,600 Common Stock 60,000 Retained Earnings 93,550 Dividends 8,000 Fees Earned. 158,600 Salaries and Wages Expense. 56,850 Utilities Expense 14,100 Advertising Expense 7,500 Repairs Expense... 6,100 Miscellaneous Expense 4,025 400,000 400,000 (Continued)

Answer 1

1) Adjusting entries

No	General journal	Debit	Credit
1	Depreciation expense	6400
	Accumulated depreciation-Building		6400
2	Depreciation expense	2800
	Accumulated depreciation-equipment		2800
3	Salaries and wages expense	900
	Salaries and wages payable		900
4	Insurance expense (6000-1500)	4500
	Prepaid insurance		4500
6	Account receivable	10200
	Fees earned		10200
7	Supplies expense	1110
	Supplies (1725-615)		1110
8	Unearned rent (3600-300)	3300
	Rent revenue		3300

Adjusting trial balance

	Debit	Credit
Cash	10200
Account receivable	44950
Prepaid insurance	1500
Supplies	615
Land	50000
Building	155750
Accumulated depreciation-Building		69250
Equipment	45000
Accumulated depreciation-equipment		20450
Account payable		3750
Salaries and wages payable		900
Unearned rent		300
Common Stock		60000
Retained earnings		93550
Dividend	8000
Fees earned		168800
Rent revenue		3300
Salaries and wages expense	57750
Utilities expense	14100
Advertising expense	7500
Repairs expense	6100
Miscellaneous expense	4025
Depreciation expense-Building	6400
Depreciation expense-Equipment	2800
Insurance expense	4500
Supplies expense	1110
Total	420300	420300