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Pitman Company is a small editorial services company owned and operated by Jan Pitman. On October 31, 2019 the end of the current year, Pitman

Pitman Company is a small editorial services company owned and operated by Jan Pitman. On October 31, 2019 the end of the current year, Pitman Companys accounting clerk prepared the following unadjusted trial balance:

Pitman Company

UNADJUSTED TRIAL BALANCE

October 31, 2019

ACCOUNT TITLE DEBIT CREDIT

1

Cash

7,710.00

2

Accounts Receivable

37,935.00

3

Prepaid Insurance

7,070.00

4

Supplies

2,125.00

5

Land

108,400.00

6

Building

145,300.00

7

Accumulated Depreciation-Building

85,610.00

8

Equipment

134,800.00

9

Accumulated Depreciation-Equipment

96,100.00

10

Accounts Payable

12,625.00

11

Unearned Rent

6,340.00

12

Jan Pitman, Capital

219,690.00

13

Jan Pitman, Drawing

15,120.00

14

Fees Earned

323,700.00

15

Salaries and Wages Expense

196,770.00

16

Utilities Expense

42,265.00

17

Advertising Expense

23,135.00

18

Repairs Expense

17,195.00

19

Miscellaneous Expense

6,240.00

20

Totals

744,065.00

744,065.00

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

a. Unexpired insurance at October 31, $6,105.
b. Supplies on hand at October 31, $485.
c. Depreciation of building for the year, $7,140.
d. Depreciation of equipment for the year, $4,445.
e. Unearned rent at October 31, $1,890.
f. Accrued salaries and wages at October 31, $3,330.
g. Fees earned but unbilled on October 31, $11,475.
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
Pitman 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 Jan Pitman, Capital
32 Jan Pitman, Drawing

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

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

Adjusting Entries

2

3

4

5

6

7

8

9

10

11

12

13

14

15

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

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

Pitman Company

ADJUSTED TRIAL BALANCE

October 31, 2019

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

Jan Pitman, Capital

14

Jan Pitman, 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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