Question
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 | 7,500.00 |
|
2 | Accounts Receivable | 38,400.00 |
|
3 | Prepaid Insurance | 7,200.00 |
|
4 | Supplies | 1,980.00 |
|
5 | Land | 112,500.00 |
|
6 | Building | 300,250.00 |
|
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 | Jan Pitman, Capital |
| 371,000.00 |
13 | Jan Pitman, 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 | 900,000.00 | 900,000.00 |
The data needed to determine year-end adjustments are as follows:
a. | Unexpired insurance at October 31, $600. |
b. | Supplies on hand at October 31, $675. |
c. | Depreciation of building for the year, $12,000. |
d. | Depreciation of equipment for the year, $8,600. |
e. | Unearned rent at October 31, $2,250. |
f. | Accrued salaries and wages at October 31, $2,800. |
g. | Fees earned but unbilled on October 31, $10,050. |
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 ACCOUNTSPitman CompanyGeneral 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.
How does grading work?
PAGE 10
JOURNAL
ACCOUNTING EQUATION
Score: 164/176
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
---|---|---|---|---|---|---|---|---|
1 |
| Adjusting Entries |
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2 | ? | ? |
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3 | ? |
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4 | ? | ? |
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5 | ? |
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6 | ? | ? |
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7 | ? |
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8 | ? | ? |
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9 | ? |
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10 | ? | ? |
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11 | ? |
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12 | ? | ? |
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13 | ? |
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14 | ? | ? |
| ? | ||||
15 | ? |
| ? |
2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance.
Question not attempted.
Pitman Company
ADJUSTED TRIAL BALANCE
Score: 0/103
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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