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G H J Shift 0 Chapter 3 The Adjusting Process 151 Unearned Rent 6,750 Jan Pitman

ID: 2332648 • Letter: G

Question

G H J Shift 0 Chapter 3 The Adjusting Process 151 Unearned Rent 6,750 Jan Pitman, Capital Jan Pitman, Drawing Fees Earned. Salaries and Wages Expense. Utilities Expense 193,370 Advertising Expense Repairs Expense Miscellaneous Expense 2.375 22,800 17,250 6,075 00000 0.000 The data needed to determine year-end adjustments are as follows: Unexpired insurance at October 31, $600. Supplies on hand at October 31, $675. . Depreciation of building for the year, $12,000. . Depreciation of equipment for the year, $8,600. Unearned rent at October 31, $2,250. Accrued salaries and wages at October 31, $2,800. . Fees earned but unbilled on October 31, $10,050. Instructions Wages Payable, Rent Revenue, Insurance Expense, Depreciation Expense-Building Depreciation Expense-Equipment, and Supplies Expense. 1. Journalize the adjusting entries using the following additional accounts: Salaries and 2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance.

Explanation / Answer

SOLUTION:

1

Insurance Expense

6,600

Prepaid Insurance

6,600

2

Supplies Expense

1,305

Supplies

1,305

3

Depreciation Expense - Building

12,000

Accumulated Depreciation - Building

12,000

4

Depreciation Expense - Equipment

8,600

Accumulated Depreciation - Equipment

8,600

5

Unearned Rent

4,500

Rent Revenue

4,500

6

Salaries and Wages Expense

2,800

Salaries and Wages Payable

2,800

7

Accounts Receivable

10,050

Fees Earned

10,050

TRIAL BALANCE:

Debit

Credit

Cash

7,500

Land

112,500

Building

300,250

Accounts Receivable

48,450

Prepaid Insurance

600

Supplies

675

Accumulated Dep - Building

99,550

Equipment

135,300

Accumulated Dep - Equipment

106,550

Salaries and Wages Payable

2,800

Accounts Payable

12,150

Unearned Rent

2,250

Jan Pitman, Capital

371,000

Jan Pitman, Drawing

15,000

Fees Earned

334,650

Rent Revenue

4,500

Salaries and Wages Exp

196,170

Utilities Exp

42,375

Advertising Exp

22,800

Repairs Exp

17,250

Insurance Exp

6,600

Supplies Exp

1,305

Depreciation Exp- Building

12,000

Depreciation Exp - Equipment

8,600

Miscellaneous Exp

6,075

Total

933,450

933,450

1

Insurance Expense

6,600

Prepaid Insurance

6,600

2

Supplies Expense

1,305

Supplies

1,305

3

Depreciation Expense - Building

12,000

Accumulated Depreciation - Building

12,000

4

Depreciation Expense - Equipment

8,600

Accumulated Depreciation - Equipment

8,600

5

Unearned Rent

4,500

Rent Revenue

4,500

6

Salaries and Wages Expense

2,800

Salaries and Wages Payable

2,800

7

Accounts Receivable

10,050

Fees Earned

10,050