Rowland Company is a small editorial services company owned and operated by Marl
ID: 2420936 • Letter: R
Question
Rowland Company is a small editorial services company owned and operated by Marlene Rowland. On August 31, 2016, the end of the current year, Rowland Company’s accounting clerk prepared the following unadjusted trial balance:
Rowland Company
UNADJUSTED TRIAL BALANCE
August 31, 2016
ACCOUNT TITLE
DEBIT
CREDIT
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:
Required:
a.
Unexpired insurance at August 31, $6,000.
b.
Supplies on hand at August 31, $480.
c.
Depreciation of building for the year, $7,500.
d.
Depreciation of equipment for the year, $4,150.
e.
Rent unearned at August 31, $1,550.
f.
Accrued salaries and wages at August 31, $3,200.
g.
Fees earned but unbilled on August 31, $11,330.
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
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 Expense
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.
Question not attempted.
PAGE 10
JOURNAL
Score: 0/176
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
1
Adjusting Entries
2
3
4
5
6
7
8
9
10
11
12
13
14
15
2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance.
How does grading work?
Rowland Company
ADJUSTED TRIAL BALANCE
Score: 70/107
August 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
Common Stock
14
Retained Earnings
15
Dividends
16
Fees Earned
17
Rent Revenue
18
Salaries and Wages Expense
19
Utilities Expense
20
Advertising Expense
21
Repairs Expense
22
Depreciation Expense-Building
23
Depreciation Expense-Equipment
24
Insurance Expense
25
Supplies Expense
26
Miscellaneous Expense
27
Totals
Complete the last two charts.
ACCOUNT TITLE
DEBIT
CREDIT
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
Explanation / Answer
1)
2)
Working
No Account Title & Explaination Debit Credit a Insurance Expenses (7200-6000) 1200 Prepaid Insurance 1200 b Supplies Expenses (1980-480) 1500 Supplies 1500 c Depreciation Expenses - Building 7500 Accumulated Depreciation-Building 7500 d Depreciation Expenses - Equipment 4150 Accumulated Depreciation-Equipment 4150 e Unearned Rent (6750-1550) 5200 Rent Revenue 5200 f Salaries and Wages Expense 3200 Salaries and Wages Payable 3200 g Account Recievable 11330 Fees Earned 11330Related Questions
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