djusting Entries and Adjusted Trial Balances The data needed to determine year-e

Question

djusting Entries and Adjusted Trial Balances

The data needed to determine year-end adjustments are as follows:

Unexpired insurance at October 31, $5,400.

Supplies on hand at October 31, $375.

Depreciation of building for the year, $6,000.

Depreciation of equipment for the year, $3,000.

Rent unearned at October 31, $1,350.

Accrued salaries and wages at October 31, $2,900.

Fees earned but unbilled on October 31, $18,600.

Required:

   .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.

2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank.

Explanation / Answer

Dickens Company All Amounts in $ 1. Adjustment Journal Entries Insurance A/c DR 5400 To Prepaid Insurance A/c 5400 Supplies A/c DR 375 To Supplies Expense A/c 375 Depreciation - Building A/c DR 6000 To Accumulated Depreciation - Building A/c 6000 Depreciation - Equipment A/c DR 3000 To Accumulated Depreciation - Equipment A/c 3000 Unearned Rent A/c DR 1350 To Rent Revenue A/c 1350 Salaries and Wages Expense A/c DR 2900 To Salaries and Wages Payable A/c 2900 Accounts Receivable A/c DR 18600 To Fees Earned A/c 18600 Adjusted Trial Balance as on October 31, 2014 Debit Credit Balances Balances Cash 7500 Accounts Receivable 57000 Prepaid Insurance 1800 Supplies 2355 Land 112500 Building 150250 Accumulated Depreciation - Building 93550 Equipment 135300 Accumulated Depreciation - Equipment 100950 Accounts Payable 12150 Salaries and Wages Payable 2900 Unearned Rent 5400 Monica Baker, Capital 221000 Monica Baker, Drawing 15000 Fees Earned 343200 Rent Revenue 1350 Salaries and Wages Expense 196270 Utilities Expense 42375 Advertising Expense 22800 Repairs Expense 17250 Miscellaneous Expense 6075 Insurance 5400 Supplies Expense 375 Depreciation - Building 6000 Depreciation - Equipment 3000 780875 780875

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