Galloway Company is a small editorial services company owned and operated by Fran Briggs. On July 31, 2012, the end of the current year, Galloway Company??s accounting clerk prepared the unadjusted trial balance shown on the next page. The data needed to determine year-end adjustments are as follows:a. Unexpired insurance at July 31, $4,800.b. Supplies on hand at July 31, $600.c. Depreciation of building for the year, $3,100.d. Depreciation of equipment for the year, $2,700.

e. Rent unearned at July 31, $1,750.f. Accrued salaries and wages at July 31, $3,000.g. Fees earned but unbilled on July 31, $10,750.

Instructions1. 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:

Galloway Company Unadjusted Trial Balance July 31, 2012 Debit Credit Balances Balances Cash 7,500 Accounts Receivable. 38,400 Prepaid Insurance Supplies.. 7,200 1,980 Land 112,500 Building.. 200,250 Accumulated Depreciation-Building.. 137,550 135,300 Equipment...... Accumulated Depreciation-Equipment . Accounts Payable 97,950 12,150 Unearned Rent.. 6,750 Capital Stock... Retained Earnings. 80,000 141,000 Dividends.. 15,000 Fees Earned.... 324,600 Salaries and Wages Expense. Utilities Expense Advertising Expense.. 193,370 42,375 22,800 Repairs Expense... Miscellaneous Expense 17,250 6,075 800,000 800,000