Question

142 Chapter 3 The Adjusting Process PR 3-5A Adjusting entries and adjusted trial balances OBJ. 2, 3, 4 ✓ 2. Total of Debit Rowland Company is a small editorial services company owned and operated by Marlene column: $776,180 Rowland. On August 31, 2016, the end of the current year, Rowland Company's account- ing clerk prepared the following unadjusted trial balance: Rowland Company Unadjusted Trial Balance General Ledger August 31, 2016 Debit Credit Balances Balances Cash 7,500 Accounts Receivable. 38,400 Prepaid Insurance 7,200 Supplies 1,980 Land 112,500 Building 150,250 Accumulated Depreciation-Building. 87.550 Equipment... 135,300 Accumulated Depreciation-Equipment 97,950 Accounts Payable 12,150 Unearned Rent... 6,750 Marlene Rowland, Capital 221,000 Marlene Rowland, Drawing 15,000 Fees Earned... 324,600 Salaries and Wages Expense. 193,370 Utilities Expense 42,375 Advertising Expense... 22,800 Repairs Expense... 17,250 Miscellaneous Expense. 6,075 750,000 750,000 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. & 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.

Answer 1

Credit Requirement (1) No Account Title & Explaination (a) Insurance Expenses Prepaid Insurance Debit $ 1,200 $ 1,200 $ 1,500 (b) Supplies Expenses Supplies $ 1,500 $ 7,500 o Depreciation Expenses - Building Accumulated Depreciation-Building $ 7,500 (d) Depreciation Expenses - Equipment Accumulated Depreciation-Equipment $ 4,150 $ 4,150 (e) Unearned Rent Rent Revenue $ 5,200 $ 5,200 Requirement (2) Rowland Company Adjusted Trial Balance August 31, 2016. Unadjusted Trial Balance Adjustment Entries Adjusted Trial Balance Accounts Title Debit Credit Debit Credit Debit Credit Cash $ 7,500 $ 7,500 Accounts Receivable $ 38,400 $ 11,330 $ 49,730 Prepaid Insurance $ 7,200 $ 1,200 $ 6,000 Supplies $ 1,980 $ 1,500 $ 480 Land $ 112,500 $ 112,500 Building $ 150,250 $ 150,250 Accumulated Depreciation-Building $ 87,550 $ 7,500 $ 95,050 Equipment $ 135,300 $ 135,300 Accumulated Depreciation Equipment $ 97,950 $ 4,150 $ 102, 100 Accounts Payable $ 12,150 $ 12,150 Salaries and Wages Payable $ 3,200 $ 3,200 Unearned Rent $ 6,750 $ 5,200 $ 1,550 Marlene Rowland Capital $221,000 $ 221,000 Marlene Rowland Drawing $ 15,000 $ 15,000 Fees Earned $324,600 $ 11,330 $335,930 Salaries and Wages Expense $ 193,370 $ 3,200 $ 196,570 Utilities Expense $ 42,375 $ 42,375 Advertising Expense $ 22,800 $ 22,800 Repairs Expense $ 17,250 $ 17,250 Miscelaneous Expense $ 6,075 $ 6,075 Insurance Expenses $ 1,200 $ 1,200 Supplies Expenses $ 1,500 $ 1,500 Depreciation Expenses - Building $ 7,500 $ 7,500 Depreciation Expenses - Equipment $ 4,150 $ 4,150 Rent Revenue $ 5,200 $ 5,200 Totals $ 750,000 $750,000 $34,080$ 34,080 $ 776,180 $ 776,180 (1) Salaries and Wages Expense Salaries and Wages Payable $ 3,200 $ 3,200 (9) Account Recievable Fees Earned $ 11,330 $ 11,330 Note : Please comment down for any further clarifications. Note : You can take format of last adjusted trial balance as answer if you want.