Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. Reece Financial Services Co.'s accounting clerk prepared the following unadjusted trial balance at July 31, 2016:

The data needed to determine year-end adjustments are as follows:
a. Depreciation of building for the year, $6,400.
b. Depreciation of equipment for the year, $2,800.
c. Accrued salaries and wages at July 31, $900.
d. Unexpired insurance at July 31, $1,500.
e. Fees earned but unbilled on July 31, $10,200.
f. Supplies on hand at July 31, $615.
g. Rent unearned at July 31, $300.
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.

Transcribed Image Text:

Reece Financlal Services Co. Unadjusted Trial Balance July 31, 2016 Credit 34,750 6,000 Prepaid Insurance.._... . 50,000 62,850 45,000 17,650 3,750 3,600 153,550 Unearned Rent Joni Reece, Drawing Fees Earned Salaries and Wages Expense.... 158,600 14,100 Advertising Expense Repairs Expense 400,000 400,000