Solve the following problem. Charts of Accounts: Rowland Company is a small edit
ID: 2329276 • Letter: S
Question
Solve the following problem.
Charts of Accounts:
Rowland Company is a small editorial services company owned and operated by Marlene Rowland. On August 31, 2018, the end of the current year, Rowland Company’s accounting clerk prepared the following unadjusted trial balance:
Rowland Company
UNADJUSTED TRIAL BALANCE
August 31, 2018
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
150,250.00
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
Common Stock
75,000.00
13
Retained Earnings
146,000.00
14
Dividends
15,000.00
15
Fees Earned
324,600.00
16
Salaries and Wages Expense
193,370.00
17
Utilities Expense
42,375.00
18
Advertising Expense
22,800.00
19
Repairs Expense
17,250.00
20
Miscellaneous Expense
6,075.00
21
Totals
750,000.00
750,000.00
The data needed to determine year-end adjustments are as follows:
CHART OF ACCOUNTS Rowland 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 Common Stock 32 Retained Earnings 33 Dividends 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 ExpenseExplanation / Answer
Answers
Adjustment no.
Accounts title
Debit
Credit
Working (if any)
a.
Insurance Expense
$ 1,200.00
Beginning bal - End bal: 7200 - 6000
Prepaid Insurance
$ 1,200.00
(Insurance expired)
b.
Supplies Expense
$ 1,500.00
Beginning bal - End bal: 1980 - 480
Supplies
$ 1,500.00
(Supplies consumed)
c.
Depreciation Expense-Building
$ 7,500.00
Accumulated Depreciation-Building
$ 7,500.00
(Building depreciated)
d.
Depreciation Expense-Equipment
$ 4,150.00
Accumulated Depreciation-Equipment
$ 4,150.00
(Equipment depreciated)
e.
Unearned Rent
$ 5,200.00
Beginning bal - End bal: 6750 - 1550
Rent Revenue
$ 5,200.00
(Rent revenue now earned)
f.
Salaries and Wages Expense
$ 3,200.00
Salaries & Wages Payable
$ 3,200.00
(Wages due but not paid)
g.
Accounts Receivable
$ 11,330.00
Fees Earned
$ 11,330.00
(Fees earned and due from clients)
Unadjusted Trial Balance
Adjustments
Adjusted Trial Balance
ACCOUNT TITLE
DEBIT
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT
Cash
$ 7,500.00
$ 7,500.00
Accounts Receivable
$ 38,400.00
$ 11,330.00
$ 49,730.00
Prepaid Insurance
$ 7,200.00
$ 1,200.00
$ 6,000.00
Supplies
$ 1,980.00
$ 1,500.00
$ 480.00
Land
$ 112,500.00
$ 112,500.00
Building
$ 150,250.00
$ 150,250.00
Accumulated Depreciation-Building
$ 87,550.00
$ 7,500.00
$ 95,050.00
Equipment
$ 135,300.00
$ 135,300.00
Accumulated Depreciation-Equipment
$ 97,950.00
$ 4,150.00
$ 102,100.00
Accounts Payable
$ 12,150.00
$ 12,150.00
Unearned Rent
$ 6,750.00
$ 5,200.00
$ 1,550.00
Salaries & Wages Payable
$ 3,200.00
$ 3,200.00
Common Stock
$ 75,000.00
$ 75,000.00
Retained Earnings
$ 146,000.00
$ 146,000.00
Dividends
$ 15,000.00
$ 15,000.00
Fees Earned
$ 324,600.00
$ 11,330.00
$ 335,930.00
Rent Revenue
$ 5,200.00
$ 5,200.00
Salaries and Wages Expense
$ 193,370.00
$ 3,200.00
$ 196,570.00
Utilities Expense
$ 42,375.00
$ 42,375.00
Advertising Expense
$ 22,800.00
$ 22,800.00
Repairs Expense
$ 17,250.00
$ 17,250.00
Depreciation Expense-Building
$ 7,500.00
$ 7,500.00
Depreciation Expense-Equipment
$ 4,150.00
$ 4,150.00
Insurance Expense
$ 1,200.00
$ 1,200.00
Supplies Expense
$ 1,500.00
$ 1,500.00
Miscellaneous Expense
$ 6,075.00
$ 6,075.00
TOTALs
$ 750,000.00
$ 750,000.00
$ 34,080.00
$ 34,080.00
$ 776,180.00
$ 776,180.00
Adjustment no.
Accounts title
Debit
Credit
Working (if any)
a.
Insurance Expense
$ 1,200.00
Beginning bal - End bal: 7200 - 6000
Prepaid Insurance
$ 1,200.00
(Insurance expired)
b.
Supplies Expense
$ 1,500.00
Beginning bal - End bal: 1980 - 480
Supplies
$ 1,500.00
(Supplies consumed)
c.
Depreciation Expense-Building
$ 7,500.00
Accumulated Depreciation-Building
$ 7,500.00
(Building depreciated)
d.
Depreciation Expense-Equipment
$ 4,150.00
Accumulated Depreciation-Equipment
$ 4,150.00
(Equipment depreciated)
e.
Unearned Rent
$ 5,200.00
Beginning bal - End bal: 6750 - 1550
Rent Revenue
$ 5,200.00
(Rent revenue now earned)
f.
Salaries and Wages Expense
$ 3,200.00
Salaries & Wages Payable
$ 3,200.00
(Wages due but not paid)
g.
Accounts Receivable
$ 11,330.00
Fees Earned
$ 11,330.00
(Fees earned and due from clients)
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