Chapter 3 The Adjusting Process 147 2. Total of Debit column: $776,900 X FECIL TEMPLATE PR 3-5A Adjusting entries and adjusted trial balances Obj. 2, 3, 4, 5, 6 Sears Editing Company is a small editorial services company owned and operated by Deloris Sears. On January 31, 2011, the end of the current year, Sears Editing Company's accounting clerk prepared the following unadjusted trial balance: Sears Editing Company Unadjusted Trial Balance January 31, 2011 Debit Credit Balances Balances Cash 7,500 Accounts Receivable. 38.400 Prepaid Insurance 7,200 Supplies... 1.980 Land 112.500 Building 150.250 Accumulated Depreciation-Building. 87,550 Equipment... 135,300 Accumulated Depreciation-Equipment 97,950 Accounts Payable 12,150 Unearned Rent. 6,750 Common Stock 75,000 Retained Earnings 146,000 Dividends 15,000 Fees Earned. 324,600 Salaries and Wages Expense. 193,370 Utilities Expense 42,375 Advertising Expense... 22,800 Repairs Expense.. 17.250 Miscellaneous Expense 6,075 750,000 750,000 The data needed to determine year-end adjustments are as follows: Unexpired insurance at January 31, $2,400. Supplies on hand at January 31, $250. Depreciation of building for the year, $6,600. Depreciation of equipment for the year, $3,500. Rent unearned at January 31, $2,750. Accrued salaries and wages at January 31, $1,800. Fees earned but unbilled on January 31, $15,000. 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