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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

7,655.00

2

Accounts Receivable

38,345.00

3

Prepaid Insurance

7,075.00

4

Supplies

2,290.00

5

Land

113,500.00

6

Building

149,450.00

7

Accumulated Depreciation-Building

87,905.00

8

Equipment

133,250.00

9

Accumulated Depreciation-Equipment

96,435.00

10

Accounts Payable

11,860.00

11

Unearned Rent

6,705.00

12

Jan Pitman, Capital

220,820.00

13

Jan Pitman, Drawing

14,690.00

14

Fees Earned

328,600.00

15

Salaries and Wages Expense

198,220.00

16

Utilities Expense

42,120.00

17

Advertising Expense

22,315.00

18

Repairs Expense

17,210.00

19

Miscellaneous Expense

6,205.00

20

Totals

752,325.00

752,325.00

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

a. Unexpired insurance at October 31, $5,860.
b. Supplies on hand at October 31, $545.
c. Depreciation of building for the year, $7,985.
d. Depreciation of equipment for the year, $4,080.
e. Unearned rent at October 31, $1,145.
f. Accrued salaries and wages at October 31, $3,490.
g. Fees earned but unbilled on October 31, $11,640.
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

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
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

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.

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

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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