9/23/2019 CengageNOWv2 | Online teaching and learning resource from Cengage Learning Adjusting entries and adjusted trial balances Instructions Pitman Company is a small editorial services company owned and operated by Jan Pitman. On October 31, 2019 the end of the current year, Pitman Company's accounting clerk prepared following unadjusted trial balance: Pitman Company UNADJUSTED TRIAL BALANCE October 31, 2019 ACCOUNT TITLE 1 Cash 2 Accounts Receivable 3 DEBIT CREDIT 7,135.00 37,950.00 Prepaid Insurance 7,045.00 4 Supplies 1,895.00 5 Land 116,150.00 6 Building 148,750.00 7 Accumulated Depreciation-Building 88,280.00 8 Equipment 133,800.00 9 Accumulated Depreciation-Equipment 97,280.00 10 Accounts Payable 12,145.00 11 Unearned Rent 6,970.00 12 Jan Pitman, Capital 222,685.00 13 Jan Pitman, Drawing 15,300.00 14 Fees Earned 320,650.00 15 Salaries and Wages Expense 190,770.00 16 Utilities Expense 42,730.00 17 Advertising Expense 22,595.00 18 Repairs Expense 17,420.00 19 Miscellaneous Expense 6,470.00 20 Totals 748,010.00 748,010.00 The data needed to determine year-end adjustments are as follows: a. Unexpired insurance at October 31, $6,080. b. Supplies on hand at October 31, $470. c. Depreciation of building for the year, $7,245. d. Depreciation of equipment for the year, $4,140. e. Unearned rent at October 31, $1,200. f. Accrued salaries and wages at October 31, $3,550. g. Fees earned but unbilled on October 31, $11,125. Required: 1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable, Rent Revenue, Insurance Expense, Depreciation ExpenseBuilding, Depreciation ExpenseEquipment and Supplies Expense. Refer to the Chart of Accounts for exact wording of account titles. 2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance. https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inp... 1/3 9/23/2019 CengageNOWv2 | Online teaching and learning resource from Cengage Learning Chart of Accounts CHART OF ACCOUNTS Pitman Company General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 42 Rent Revenue 13 Prepaid Insurance 14 Supplies EXPENSES 15 Land 51 Salaries and Wages Expense 16 Building 52 Utilities Expense 17 Accumulated Depreciation-Building 53 Advertising Expense 18 Equipment 54 Repairs Expense 19 Accumulated Depreciation-Equipment 55 Depreciation Expense-Building 56 Depreciation Expense-Equipment LIABILITIES 57 Insurance Expense 21 Accounts Payable 58 Supplies Expense 22 Unearned Rent 59 Miscellaneous Expense 23 Salaries and Wages Payable EQUITY 31 Jan Pitman, Capital 32 Jan Pitman, Drawing Journal 1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable, Rent Revenue, Insurance Expense, Depreciation ExpenseBuilding, Depreciation Equipment and Supplies Expense. Refer to the Chart of Accounts for exact wording of account titles. PAGE 10 JOURNAL DATE 1 DESCRIPTION Adjusting Entries ACCOUNTING EQUATION POST. REF. 2 3 4 5 6 7 8 9 10 11 12 13 14 DEBIT CREDIT ASSETS LIABILITIES EQUITY https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inp... 2/3 9/23/2019 CengageNOWv2 | Online teaching and learning resource from Cengage Learning DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 15 Adjusted Trial Balance 2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance. Pitman Company ADJUSTED TRIAL BALANCE October 31, 2019 ACCOUNT TITLE 1 Cash 2 Accounts Receivable 3 Prepaid Insurance 4 Supplies 5 Land 6 Building 7 Accumulated Depreciation-Building 8 Equipment 9 Accumulated Depreciation-Equipment 10 Accounts Payable 11 Unearned Rent 12 Salaries and Wages Payable 13 Jan Pitman, Capital 14 Jan Pitman, Drawing 15 Fees Earned 16 Rent Revenue 17 Salaries and Wages Expense 18 Utilities Expense 19 Advertising Expense 20 Repairs Expense 21 Depreciation Expense-Building 22 Depreciation Expense-Equipment 23 Insurance Expense 24 Supplies Expense 25 Miscellaneous Expense 26 Totals DEBIT CREDIT https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=assignments&takeAssignmentSessionLocator=assignment-take&inp... 3/3
