Rowland Company is a small editorial services company owned and operated by Marl
ID: 2547529 • Letter: R
Question
Rowland Company is a small editorial services company owned and operated by Marlene Rowand. 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 ACCOUNT TITLE DEBIT CREDIT 13500 3795000 7045.00 1,895.00 116,150.00 148,750.00 1Cash 2 Accounts Receivable Prepaid Insurance 4 Supplies 5 Land 6 Building 88,28000 Accumulated Depreclation-Bulding 8 Equipmemt 9 Accumulated Depreciation-Equipment 10 Accounts Payable 1 Uneamed Rent 12 Common Stock 13 Retained Eamings 14DMdends 15 Fees Eamed 16 Salaries and Wages Expense 17Utilities Expense 8 Advertising Expense 19 Repairs Experse 20Miscelaneous Expense 21 Totals 133,80000 97,280.00 12,145.00 6,970.00 74,735.00 14795000 15,30000 320,650.00 190,770.00 2,730.00 22,595.00 17420.00 6,47000 748,01000 748,01000 The data needed to determine year-end adjustments are as follows: a. Unexpired insurance at August 31, $6,080. b. Supplies on hand at August 31, $470. C. Depreciation of building for the year, $7,245. d. Depreciation of equipment for the year, $4,140. e. Rent unearned at August 31, $1,200. f. Accrued salaries and wages at August 31, $3,550. g. Fees earned but unbilled on August 31, S11,125. Required: 1. Journalize the acjusting entries using the following aoditional accounts: Salaries and Wages Payabie; Rent Revenue; Insurance Expense; Depreciation Expense-Buiding: Depreciation Expense-Equipment, and Supplies Expense. Refer to the Chart of Accounts for exact wording of account fities 2. Detemine the balances of the accounts affected by the acjusting entries, and prepare an adjusted trial balance.Explanation / Answer
Answer:
1
Descriptions
Debit $
Credit $
Insurance expanses
965
Prepaid insurance
965
(7045-6080)
Supplies expanses
1425
Supplies
1425
(1895-470)
Depreciation expanses-building
7245
Accumulated Depreciation -building
7245
Depreciation expanses-Equipment
4140
Accumulated Depreciation -Equipment
4140
Unearned rent
5770
Rent Revenue
5770
(6970-1200)
Salary and wages Expanses
3550
Salary and wages payable
3550
Account receivable
11125
Fees Earned
11125
____________________________________
2
ACCOUNT TITLE
DEBIT
CREDIT
Cash
7135
Accounts Receivable(37950+11125)
49075
Prepaid Insurance
6080
Supplies
470
Land
116150
Building
148750
Accumulated Depreciation-Building
95525
Equipment
133800
Accumulated Depreciation-Equipment
(97280+4140)
101420
Accounts Payable
12145
Unearned Rent
1200
Salaries and Wages Payable
3550
Common stock
74735
Retained earning
147950
Devidend
15300
Fees Earned (320650+11125)
331775
Rent Revenue
5770
Salaries and Wages Expense
(190770+3550)
194320
Utilities Expense
42730
Advertising Expense
22595
Repairs Expense
17420
Depreciation Expense-Building
7245
Depreciation Expense-Equipment
4140
Insurance Expense
965
Supplies Expense
1425
Miscellaneous Expense
6470
Totals
774070
774070
Descriptions
Debit $
Credit $
Insurance expanses
965
Prepaid insurance
965
(7045-6080)
Supplies expanses
1425
Supplies
1425
(1895-470)
Depreciation expanses-building
7245
Accumulated Depreciation -building
7245
Depreciation expanses-Equipment
4140
Accumulated Depreciation -Equipment
4140
Unearned rent
5770
Rent Revenue
5770
(6970-1200)
Salary and wages Expanses
3550
Salary and wages payable
3550
Account receivable
11125
Fees Earned
11125
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