Question

2. Determine the balances of the accounts affected by the adjusting entries, and prepare OBJ. 2,3,4 Rowland Company is a small editorial services company owned and operated by Marlene Rowland. On August 31, 2016, the end of the current year, Rowland Company's account PR 3-5A Adjusting entries and adjusted trial balances it 0 ing clerk prepared the following unadjusted trial balance: Rowland Company Unadjusted Trial Balance August 31, 2016 Debit Balances Credit Balances 7,500 38,400 7,200 1,980 112,500 150,250 87,550 135,300 Cash Accounts Receivable.. Prepaid Insurance Supplies Land Building Accumulated Depreciation--Building. Equipment.... Accumulated Depreciation-Equipment Accounts Payable Unearned Rent.. Marlene Rowland, Capital. Marlene Rowland, Drawing Fees Earned..... Salaries and Wages Expense. Utilities Expense Advertising Expense.. Repairs Expense. Miscellaneous Expense 97,950 12,150 6,750 221,000 15,000 324,600 193,370 42,375 22,800 17,250 6,075 750,000 750,00 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. g. 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. an adjusted trial balance.

Answer 1

1. General Journal

No	Account Title and Explanation	Debit	Credit
a	Insurance Expenses ($7,200-$6,000)	$1,200
	Prepaid Insurance		$1,200
b	Supplies Expenses	$1,500
	Supplies		$1,500
c	Depreciation Expanse -Building	$7,500
	Accumulated Depreciation -Building		$7,500
d	Dpreciation Expense-Equipment	$4,150
	Accumulated Depreciation -Equipment		$4,150
e	Unearned Rent	$5,200
	Rent Revenue ($6,750 - $1,550)		$5,200
f	Salaries and Wages Expense	$3,200
	Salaries and Wages Payable		$3,200
g	Accounts Receivable	$11,330
	Fees Earned		$11,330

2. Rowland Company    Adjusted Trail Balance August .31.2012

Particulars	Debit	Credit
Cash	$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
Building	$150,250
Accumulated Depreciation -Building ($7,500+$87,550)		$95,050
Equipment	$135,300
Accumulated Depreciation Equipment ($97,950 +$4,150)		$102,100
Accounts Payable		$12,150
Unearned Rent ($6,750 -$5,200)		$1,550
Salaries & Wages Payable		$3,200
Marine Rowland Capital		$221,000
Marine Rowland Drawing	$15,000
Fees Earned ($324,600+$11,330)		$335,930
Rent Revenue		$5,200
Salaries & Wages Expense ($193,370 +$3,200)	$196,570
Utilities Expenses	$42,375
Advertising Expenses	$22,800
Insurance	$1,200
Repairs Expenses	$17,250
Depreciation Expanse -Building	$7,500
Miscellaneous Expanse	$6,075
Depreciation Expanse -Equipment	$4,150
Supplies	$1,500
Total	$776,180	$776,180