Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. Reece Financial Services Co.s accounting clerk prepared the following unadjusted trial balance at July 31, 2016:

Reece Financial Services Co.

UNADJUSTED TRIAL BALANCE

July 31, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	10,200.00
2	Accounts Receivable	34,750.00
3	Prepaid Insurance	6,000.00
4	Supplies	1,725.00
5	Land	50,000.00
6	Building	155,750.00
7	Accumulated Depreciation-Building		62,850.00
8	Equipment	45,000.00
9	Accumulated Depreciation-Equipment		17,650.00
10	Accounts Payable		3,750.00
11	Unearned Rent		3,600.00
12	Joni Reece, Capital		153,550.00
13	Joni Reece, Drawing	8,000.00
14	Fees Earned		158,600.00
15	Salaries and Wages Expense	56,850.00
16	Utilities Expense	14,100.00
17	Advertising Expense	7,500.00
18	Repairs Expense	6,100.00
19	Miscellaneous Expense	4,025.00
20	Totals	400,000.00	400,000.00

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

	a. Depreciation of building for the year, $6,400.
	b. Depreciation of equipment for the year, $2,800.
	c. Accrued salaries and wages at July 31, $900.
	d. Unexpired insurance at July 31, $1,500.
	e. Fees earned but unbilled on July 31, $10,200.
	f. Supplies on hand at July 31, $615.
	g. Rent unearned at July 31, $300.

	Required:
1.	Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation Expense-Building; Depreciation Expense-Equipment; 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

Reece Financial Services Co.

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

	EQUITY
31	Joni Reece, Capital
32	Joni Reece, Drawing

	REVENUE
41	Fees Earned

	EXPENSES
51	Salaries and Wages Expense
52	Utilities Expense
53	Advertising Expense
54	Repairs Expense
59	Miscellaneous Expense

Journal

1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation Expense-Building; Depreciation Expense-Equipment; and Supplies Expense. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1		Adjusting Entries
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Adjusted Trial Balance

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

Reece Financial Services Co.

ADJUSTED TRIAL BALANCE

July 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	Joni Reece, Capital
14	Joni Reece, Drawing
15	Fees Earned
16	Rent Revenue
17	Salaries and Wages Expense
18	Utilities Expense
19	Advertising Expense
20	Depreciation Expense-Building
21	Repairs Expense
22	Insurance Expense
23	Depreciation Expense-Equipment
24	Supplies Expense
25	Miscellaneous Expense
26	Totals