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Introductions Rowland Company is a small editorial services company owned and operated by Marlene Rowland. On August 31, 2016, the end of the current year,

Introductions

Rowland Company is a small editorial services company owned and operated by Marlene Rowland. On August 31, 2016, the end of the current year, Rowland Companys accounting clerk prepared the following unadjusted trial balance:

Rowland Company

UNADJUSTED TRIAL BALANCE

August 31, 2016

ACCOUNT TITLE DEBIT CREDIT

1

Cash

7,500.00

2

Accounts Receivable

38,400.00

3

Prepaid Insurance

7,200.00

4

Supplies

1,980.00

5

Land

112,500.00

6

Building

150,250.00

7

Accumulated Depreciation-Building

87,550.00

8

Equipment

135,300.00

9

Accumulated Depreciation-Equipment

97,950.00

10

Accounts Payable

12,150.00

11

Unearned Rent

6,750.00

12

Marlene Rowland, Capital

221,000.00

13

Marlene Rowland, Drawing

15,000.00

14

Fees Earned

324,600.00

15

Salaries and Wages Expense

193,370.00

16

Utilities Expense

42,375.00

17

Advertising Expense

22,800.00

18

Repairs Expense

17,250.00

19

Miscellaneous Expense

6,075.00

20

Totals

750,000.00

750,000.00

The data needed to determine year-end adjustments are as follows:

a. Unexpired insurance at August 31, $6,000.
b. Supplies on hand at August 31, $480.
c. Depreciation of building for the year, $7,500.
d. Depreciation of equipment for the year, $4,150.
e. Rent unearned at August 31, $1,550.
f. Accrued salaries and wages at August 31, $3,200.
g. Fees earned but unbilled on August 31, $11,330.
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.

CHART OF ACCOUNTS
Rowland Company
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
EQUITY
31 Marlene Rowland, Capital
32 Marlene Rowland, Drawing

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

Journal

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.

PAGE 10

JOURNAL

DATE DESCRIPTION POST. REF. DEBIT CREDIT

1

Adjusting Entries

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Adjustment Trial Barance

2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance.

Rowland Company

ADJUSTED TRIAL BALANCE

August 31, 2016

ACCOUNT TITLE DEBIT CREDIT

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

Marlene Rowland, Capital

14

Marlene Rowland, 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

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