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The data needed to determine year-end adjustments are as follows: a. Unexpired insurance at October 31, $5,985. b. Supplies on hand at October 31, $470.
The data needed to determine year-end adjustments are as follows:
a. | Unexpired insurance at October 31, $5,985. |
b. | Supplies on hand at October 31, $470. |
c. | Depreciation of building for the year, $7,900. |
d. | Depreciation of equipment for the year, $4,590. |
e. | Unearned rent at October 31, $1,560. |
f. | Accrued salaries and wages at October 31, $3,085. |
g. | Fees earned but unbilled on October 31, $11,010. |
| 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. |
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 Company's accounting clerk prepared the following unadjusted trial balance Pitman Company UNADJUSTED TRIAL BALANCE October 31, 2019 ACCOUNT T DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Prepaid Insurance 4 Supplies 7,565.00 38,86000 7,31000 2435.00 117,450.00 153,100.00 Land 6 Building 87,23000 8 Equipment 137,15000 99,16000 12,005.00 6,425.00 231,485.00 Accounts Payable 11 Uneaned Rent 2 Jan Pitman, Capital 13 Jan Pitman, Drawing 14 Fees Eamed 15 Salaries and Wages Expense 14,50000 27,05000 196,570.00
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