Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

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