Question
Adjusting Entries and Adjusted Trial Balances: Galloway Company is a small editorial services company owned and operated by Fran Briggs. On July 31, 2014, the
Adjusting Entries and Adjusted Trial Balances:
Galloway Company is a small editorial services company owned and operated by Fran Briggs. On July 31, 2014, the end of the current year, Galloway Company's accounting clerk prepared the unadjusted trial balance shown below.
The data needed to determine year-end adjustments are as follows:
a. Unexpired insurance at July 31, $4,430.
b. Supplies on hand at July 31, $540.
c. Depreciation of building for the year, $2,930.
d. Depreciation of equipment for the year, $2,540.
e. Rent unearned at July 31, $1,640.
f. Accrued salaries and wages at July 31, $2,870.
g. Fees earned but unbilled on July 31, $16,830.
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.
2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank.
Galloway Company Unadjusted Trial Balance July 31, 2014 Cash Accounts Receivable Prepaid Insurance Supplies Land Building Accumulated Depreciation-Building Equipment Accumulated Depreciation-Equipment Accounts Payable Unearned Rent Fran Briggs, Capital Fran Briggs, Drawing Fees Earned Salaries and Wages Expense Utilities Expense Advertising Expense Repairs Expense Miscellaneous Expense Debit Balances 3,910 35,460 6,610 1,800 104,280 188,070 125,310 13,820 179,100 39,370 21,040 15,930 5,710 740,410 Credit Balances 127,420 90,750 11,120 6,310 204,300 300,510 740,410
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