Emerson Company is a small editorial services company owned and operated by Suzanne Emerson. On October 31, 20Y6, Emerson Company's accounting clerk prepared the following unadjusted trial balance: Emerson Company UNADJUSTED TRIAL BALANCE October 31, 20Y6 ACCOUNT TITLE DEBIT CREDIT 1 Cash 7,755.00 2 Accounts Receivable 3 Prepaid Insurance 38,655.00 7,380.00 4 Supplies 5 Land 2,065.00 111,050.00 6 Building 153,300.00 7 Accumulated Depreciation-Building 86,065.00 8 Equipment 140,000.00 9 Accumulated Depreciation-Equipment 97,335.00 10 Accounts Payable 12,090.00 11 Unearned Rent 6,385.00 12 Suzanne Emerson, Capital 231,005.00 13 Suzanne Emerson, Drawing 14,910.00 14 Fees Earned 327,650.00 15 Salaries and Wages Expense 197,220.00 16 Utilities Expense 42,205.00 17 Advertising Expense 18 Repairs Expense 19 Miscellaneous Expense 20 Totals The data needed to determine year-end adjustments are as follows: a. Unexpired insurance at October 31, $6,015. b. Supplies on hand at October 31, $400. c. Depreciation of building for the year, $7,740. d. Depreciation of equipment for the year, $3,835. e. Unearned rent at October 31, $1,625. f. Accrued salaries and wages at October 31, $2,720. g. Fees earned but unbilled on October 31, $11,520. 22,795.00 16,910.00 6,285.00 760,530.00 760,530.00 Required: 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. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance. General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Prepaid Insurance 14 Supplies 15 Land 16 Building 17 Accumulated Depreciation- Building 18 Equipment 19 Accumulated Depreciation- Equipment LIABILITIES 21 Accounts Payable 22 Unearned Rent 23 Salaries and Wages Payable REVENUE 41 Fees Earned 42 Rent Revenue EXPENSES 51 Salaries and Wages Expense 52 Utilities Expense 53 Advertising Expense 54 Repairs Expense 55 Depreciation Expense- Building 56 Depreciation Expense- Equipment 57 Insurance Expense 58 Supplies Expense 59 Miscellaneous Expense EQUITY 31 Suzanne Emerson, Capital 32 Suzanne Emerson, Drawing 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. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 JOURNAL DATE DESCRIPTION Adjusting Entries PAGE 10 ACCOUNTING EQUATION LIABILITIES EQUITY POST. REF. DEBIT CREDIT ASSETS 2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance. 1 Cash 2 Accounts Receivable 3 Prepaid Insurance Emerson Company ADJUSTED TRIAL BALANCE ACCOUNT TITLE 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 Suzanne Emerson, Capital October 31, 20Y6 DEBIT CREDIT 14 Suzanne Emerson, 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