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 CompanyUNADJUSTED TRIAL BALANCEOctober 31, 2019ACCOUNT TITLE DEBIT CREDIT1Cash7,710.002Accounts Receivable37,935.003Prepaid Insurance7,070.004Supplies2,125.005Land108,400.006Building145,300.007Accumulated Depreciation-Building85,610.008Equipment134,800.009Accumulated Depreciation-Equipment96,100.0010Accounts Payable12,625.0011Unearned Rent6,340.0012Jan Pitman, Capital219,690.0013Jan Pitman, Drawing15,120.0014Fees Earned323,700.0015Salaries and Wages Expense196,770.0016Utilities Expense42,265.0017Advertising Expense23,135.0018Repairs Expense17,195.0019Miscellaneous Expense6,240.0020Totals744,065.00744,065.00The data needed to determine year-end adjustments are as follows:a. Unexpired insurance at October 31, $6,105.b. Supplies on hand at October 31, $485.c. Depreciation of building for the year, $7,140.d. Depreciation of equipment for the year, $4,445.e. Unearned rent at October 31, $1,890.f. Accrued salaries and wages at October 31, $3,330.g. Fees earned but unbilled on October 31, $11,475.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
Asked Jan 29, 2019

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
7,710.00

2
Accounts Receivable
37,935.00

3
Prepaid Insurance
7,070.00

4
Supplies
2,125.00

5
Land
108,400.00

6
Building
145,300.00

7
Accumulated Depreciation-Building

85,610.00
8
Equipment
134,800.00

9
Accumulated Depreciation-Equipment

96,100.00
10
Accounts Payable

12,625.00
11
Unearned Rent

6,340.00
12
Jan Pitman, Capital

219,690.00
13
Jan Pitman, Drawing
15,120.00

14
Fees Earned

323,700.00
15
Salaries and Wages Expense
196,770.00

16
Utilities Expense
42,265.00

17
Advertising Expense
23,135.00

18
Repairs Expense
17,195.00

19
Miscellaneous Expense
6,240.00

20
Totals
744,065.00
744,065.00
The data needed to determine year-end adjustments are as follows:
a. Unexpired insurance at October 31, $6,105.
b. Supplies on hand at October 31, $485.
c. Depreciation of building for the year, $7,140.
d. Depreciation of equipment for the year, $4,445.
e. Unearned rent at October 31, $1,890.
f. Accrued salaries and wages at October 31, $3,330.
g. Fees earned but unbilled on October 31, $11,475.
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.

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Expert Answer

Step 1

Adjusting entries has been explained as underr:

a. Insurance expense will be debited and credit made of Prepaid insurance for amount left after deducting unexpired insurance from balance.

b. Remaining amount after deducting in hand supplies inventory shall be treated as consumed and is debited to Supplies expenses account.

c and D. Depreciation expense of respective assets account is debited to the depreciation expense and is credited to accumulate in Accumulated depreciation account of respective assets account.

e. Rent revenue earned for the period expired shall be treated as revenue and is credited to Rent revenue after deducting the Unearned rent account.

f.  Salaries and wages payable is added in the respective expenses and is treated as liabilities.

g. fees earaned and unbilled is treated as revenue of the period hence, credited in revenue account and receivabes is treated as assets.

The Adjusting entries are as above.

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Step 2

Adjusted Trial balance is prepared with the balances be...

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