Question
Sears Editing Company is a small editorial services company owned and operated by Deloris Sears. On January 31, 20Y1, the end of the current year,
Sears Editing Company is a small editorial services company owned and operated by Deloris Sears. On January 31, 20Y1, the end of the current year, Sears Editing Companys accounting clerk prepared the following unadjusted trial balance:
Sears Editing Company
UNADJUSTED TRIAL BALANCE
January 31, 20Y1
ACCOUNT TITLE | DEBIT | CREDIT | |
---|---|---|---|
1 | Cash | 7,420.00 |
|
2 | Accounts Receivable | 38,115.00 |
|
3 | Prepaid Insurance | 7,050.00 |
|
4 | Supplies | 1,630.00 |
|
5 | Land | 114,550.00 |
|
6 | Building | 150,250.00 |
|
7 | Accumulated Depreciation-Building |
| 88,800.00 |
8 | Equipment | 133,200.00 |
|
9 | Accumulated Depreciation-Equipment |
| 96,605.00 |
10 | Accounts Payable |
| 12,560.00 |
11 | Unearned Rent |
| 7,035.00 |
12 | Common Stock |
| 74,980.00 |
13 | Retained Earnings |
| 142,235.00 |
14 | Dividends | 15,055.00 |
|
15 | Fees Earned |
| 327,900.00 |
16 | Salaries and Wages Expense | 194,870.00 |
|
17 | Utilities Expense | 42,345.00 |
|
18 | Advertising Expense | 22,335.00 |
|
19 | Repairs Expense | 17,690.00 |
|
20 | Miscellaneous Expense | 5,605.00 |
|
21 | Totals | 750,115.00 | 750,115.00 |
The data needed to determine year-end adjustments are as follows:
a. | Unexpired insurance at January 31, $6,130. |
b. | Supplies on hand at January 31, $615. |
c. | Depreciation of building for the year, $7,610. |
d. | Depreciation of equipment for the year, $4,300. |
e. | Rent unearned at January 31, $1,490. |
f. | Accrued salaries and wages at January 31, $3,040. |
g. | Fees earned but unbilled on January 31, $10,865. |
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. |
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Chart of Accounts
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journal
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 | |
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Adjusted Trial Balance
2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance.
Sears Editing Company
ADJUSTED TRIAL BALANCE
January 31, 20Y1
ACCOUNT TITLE | DEBIT | CREDIT | |
---|---|---|---|
1 | Cash |
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2 | Accounts Receivable |
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