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Martin Editing Company is a small editorial services company owned and operated by Andrew Martin. On August 31, 20Y1, the end of the current year,

Martin Editing Company is a small editorial services company owned and operated by Andrew Martin. On August 31, 20Y1, the end of the current year, Martin Editing Companys accounting clerk prepared the following unadjusted trial balance:

Martin Editing Company

UNADJUSTED TRIAL BALANCE

August 31, 20Y1

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

Common Stock

75,000.00

13

Retained Earnings

146,000.00

14

Dividends

15,000.00

15

Fees Earned

324,600.00

16

Salaries and Wages Expense

193,370.00

17

Utilities Expense

42,375.00

18

Advertising Expense

22,800.00

19

Repairs Expense

17,250.00

20

Miscellaneous Expense

6,075.00

21

Totals

750,000.00

750,000.00

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

Unexpired insurance at August 31, $1,800.
Supplies on hand at August 31, $300.
Depreciation of building for the year, $7,500.
Depreciation of equipment for the year, $6,000.
Rent unearned at August 31, $2,250.
Accrued salaries and wages at August 31, $2,175.
Fees earned but unbilled on August 31, $12,700.
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.
2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance.

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