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Adjusting entries and adjusted trial balancesInstructions Chart of Accounts Journal Adjusted Trial Balance XInstructionsPitman Company is a small editorial services company owned and operated by Jan Pitman. On October 31, 2019 the end of the current year, Pitman Company’s accounting clerk prepared the following unadjusted trial balance:Pitman CompanyUNADJUSTED TRIAL BALANCEOctober 31, 2019ACCOUNT TITLEDEBITCREDIT1Cash7,420.002Accounts Receivable38,115.003Prepaid Insurance7,050.004Supplies1,630.005Land114,550.006Building150,250.007Accumulated Depreciation-Building88,800.008Equipment133,200.009Accumulated Depreciation-Equipment96,605.0010Accounts Payable12,560.0011Unearned Rent7,035.0012Jan Pitman, Capital217,215.0013Jan Pitman, Drawing15,055.0014Fees Earned327,900.0015Salaries and Wages Expense194,870.0016Utilities Expense42,345.0017Advertising Expense22,335.0018Repairs Expense17,690.0019Miscellaneous Expense5,605.0020Totals750,115.00750,115.00 The data needed to determine year-end adjustments are as follows:a.Unexpired insurance at October 31, $6,130.b.Supplies on hand at October 31, $615.c.Depreciation of building for the year, $7,610.d.Depreciation of equipment for the year, $4,300.e.Unearned rent at October 31, $1,490.f.Accrued salaries and wages at October 31, $3,040.g.Fees earned but unbilled on October 31, $10,865.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. 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.

Question

Adjusting entries and adjusted trial balances

Instructions Chart of Accounts Journal Adjusted Trial Balance

 

X
Instructions


Pitman Company is a small editorial services company owned and operated by Jan Pitman. On October 31, 2019 the end of the current year, Pitman Company’s accounting clerk prepared the following unadjusted trial balance:

Pitman Company
UNADJUSTED TRIAL BALANCE
October 31, 2019


ACCOUNT TITLE
DEBIT
CREDIT
1
Cash
7,420.00

2
Accounts Receivable
38,115.00

3
Prepaid Insurance
7,050.00

4
Supplies
1,630.00

5
Land
114,550.00

6
Building
150,250.00

7
Accumulated Depreciation-Building

88,800.00
8
Equipment
133,200.00

9
Accumulated Depreciation-Equipment

96,605.00
10
Accounts Payable

12,560.00
11
Unearned Rent

7,035.00
12
Jan Pitman, Capital

217,215.00
13
Jan Pitman, Drawing
15,055.00

14
Fees Earned

327,900.00
15
Salaries and Wages Expense
194,870.00

16
Utilities Expense
42,345.00

17
Advertising Expense
22,335.00

18
Repairs Expense
17,690.00

19
Miscellaneous Expense
5,605.00

20
Totals
750,115.00
750,115.00

 

The data needed to determine year-end adjustments are as follows:
a.
Unexpired insurance at October 31, $6,130.
b.
Supplies on hand at October 31, $615.
c.
Depreciation of building for the year, $7,610.
d.
Depreciation of equipment for the year, $4,300.
e.
Unearned rent at October 31, $1,490.
f.
Accrued salaries and wages at October 31, $3,040.
g.
Fees earned but unbilled on October 31, $10,865.


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. 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.

 

 

 

 

 

 

 

check_circleAnswer
Step 1
Part- 1
Adjusting journal enthes are
end to adjust the balance of
recorded at the year
total debit and
credit. These entres are ucorded dor tranuachons
not
period but uuhich are
that
Occw in a
displayed acaurately
help_outline

Image Transcriptionclose

Part- 1 Adjusting journal enthes are end to adjust the balance of recorded at the year total debit and credit. These entres are ucorded dor tranuachons not period but uuhich are that Occw in a displayed acaurately

fullscreen
Step 2
Jauenal entis uill be ecarded a
follaws
Dehit AmoontCredit amountE
tins)
Dats
مهلي یه
Inwrance expense (7,050-4130)
a..
920
Oct. 31
To Prepaid inaurance
920
(To mecard adjusthmernt o
wnezpired inuance)
bSupplies pense(1630-615)
Ock 3
L015
Te نااند
1,015
To ucora uplis expenue
adjusiment)
C Depreciation expense-Beilding
oct 31
To Accumulatd dpiahion
7,610
7,610
-eilding
To xeard dapreciahion expenue
for buinding
dDepruciation exporse- oquipment
oct.31
4300
To A cCALlatid dpesciation
300
equipiment
To ecard depreciation
expense for equipment)
UnEarned xent (7,035-1,410) 5545
To ant uunue
.
5,545
t 31
To Yecord adjustmant ofnt)
Salariu and waga experae
To Aataris and uag paya
3,040
3,040
out.31
ble
To record adjustmunt e
aiqud salanis and uagu)
4Aecounts eaveble
10,865
10,865
To Fee eaxnud
oct.31
(To xecerd adjustmantf
help_outline

Image Transcriptionclose

Jauenal entis uill be ecarded a follaws Dehit AmoontCredit amountE tins) Dats مهلي یه Inwrance expense (7,050-4130) a.. 920 Oct. 31 To Prepaid inaurance 920 (To mecard adjusthmernt o wnezpired inuance) bSupplies pense(1630-615) Ock 3 L015 Te نااند 1,015 To ucora uplis expenue adjusiment) C Depreciation expense-Beilding oct 31 To Accumulatd dpiahion 7,610 7,610 -eilding To xeard dapreciahion expenue for buinding dDepruciation exporse- oquipment oct.31 4300 To A cCALlatid dpesciation 300 equipiment To ecard depreciation expense for equipment) UnEarned xent (7,035-1,410) 5545 To ant uunue . 5,545 t 31 To Yecord adjustmant ofnt) Salariu and waga experae To Aataris and uag paya 3,040 3,040 out.31 ble To record adjustmunt e aiqud salanis and uagu) 4Aecounts eaveble 10,865 10,865 To Fee eaxnud oct.31 (To xecerd adjustmantf

fullscreen
Step 3
Part-2
Adjusted tal Balance ucordi balan ces
of all the accounts
on its inanial
statements. This tial balance i epared ater the
company
that wull be recorded by
a
yewrding y adjusting jounal entre
help_outline

Image Transcriptionclose

Part-2 Adjusted tal Balance ucordi balan ces of all the accounts on its inanial statements. This tial balance i epared ater the company that wull be recorded by a yewrding y adjusting jounal entre

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