Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Instructions Sears Editing Company is a small editorial services company owned and operated by Deloris Sears. On January 31, 20Y1. the end of the current

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Instructions Sears Editing Company is a small editorial services company owned and operated by Deloris Sears. On January 31, 20Y1. the end of the current year. Seurs Eating Company accounting clerk prepared the following unadjusted trial balance Sears Editing Company UNADJUSTED TRIAL BALANCE January 31, 2011 ACCOUNT TITLE DEBIT CREDIT 1 Cash 7.71000 3 Accounts Receivable 37,995.00 Prepaid insurance Supplies 1 Land 7070.00 2.125.00 108.400.00 145,000.00 85,61000 Building Accumulated Depreciation Building # Equipment Accumulated Depreciation Equipment 134,900.00 96,100.00 12.62500 in Accounts Payable 6,340.00 11 Uncanned Rent 145,300.00 6 Building 7 Accumulated Depreciation-Building 85,610.00 134,800.00 8 Equipment 9 Accumulated Depreciation-Equipment 96,100.00 10 Accounts Payable 12,625.00 11 Unearned Rent 6,340.00 12 Common Stock 75,495.00 13 Retained Earnings 144,195.00 14 Dividends 15,120.00 15 Fees Earned 323,700.00 16 Salaries and Wages Expense 196,770.00 17 Utilities Expense 42,265.00 23,135.00 18 Advertising Expense 19 Repairs Expense 17,195.00 20 Miscellaneous Expense 6,240.00 21 Totals 744,065.00 744,065.00 The data needed to determine year-end adjustments are as follows: a. Unexpired insurance at January 31, $6,105. b. Supplies on hand at January 31, $485. c. Depreciation of building for the year, $7,140, d. Depreciation of equipment for the year, $4,445 e. Rent unearned at January 31, $1,890. 1. Accrued salaries and wages at January 31, $3,330. g. Fees earned but unbilled on January 31, $11,475 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 exact wording of account titles. 2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance CHART OF ACCOUNTS Sears Editing Company General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 42 Rent Revenue 13 Prepaid Insurance 14 Supplies 15 Land 16 Building 17 Accumulated Depreciation-Building 18 Equipment 19 Accumulated Depreciation-Equipment EXPENSES 51 Salaries and Wages Expenset 52 Utilities Expense 53 Advertising Expense 54 Repairs Expense 55 Depreciation Expense-Building 56 Depreciation Expense-Equipment 57 Insurance Expense 58 Supplies Expense LIABILITIES 21 Accounts Payable 22 Unearned Rent 59 Miscellaneous Expense 23 Salaries and Wages Payable 11 Cash 41 Fees Earned 12 Accounts Receivable 42 Rent Revenue 13 Prepaid Insurance 74 Supplies EXPENSES 15 Land 16 Building 51 Salaries and Wages Expense 52 Utilities Expense 53 Advertising Expense 54 Repairs Expense 17 Accumulated Depreciation-Building 18 Equipment 19 Accumulated Depreciation-Equipment 55 Depreciation Expense-Building LIABILITIES 56 Depreciation Expense-Equipment 57 Insurance Expense 58 Supplies Expense 59 Miscellaneous Expense 21 Accounts Payable 22 Unearned Rent 23 Salaries and Wages Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Information Systems

Authors: Mario Piattini

1st Edition

1878289756, 9781878289759

More Books

Students also viewed these Accounting questions