Rowland Company is a small editorial services company owned and operated by Marlene Rowland. 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 1 Cash 7,500.00 2 Accounts Receivable 38,400.00 3 Prepaid Insurance 7,200.00 4 Supplies 1,980.00 5 Land 112,500.00 6 Building 150,250.00 7 Accumulated Depreciation-Building 87,550.00 8 Equipment 135,300.00 9 Accumulated Depreciation-Equipment 97,950.00 10 Accounts Payable 12,150.00 11 Unearned Rent 6,750.00 12 Common Stock 75,000.00 13 Retained Earnings 146,000.00 14 Dividends 15,000.00 15 Fees Earned 324,600.00 16 Salaries and Wages Expense 193,370.00 17 Utilities Expense 42,375.00 18 Advertising Expense 22,800.00 19 Repairs Expense 17,250.00 20 Miscellaneous Expense 6,075.00 21 Totals 750,000.00 750,000.00 The data needed to determine year-end adjustments are as follows: a. Unexpired insurance at August 31, $6,000. b. Supplies on hand at August 31, $480. c. Depreciation of building for the year, $7,500. d. Depreciation of equipment for the year, $4,150. e. Rent unearned at August 31, $1,550. f. Accrued salaries and wages at August 31, $3,200. g. Fees earned but unbilled on August 31, $11,330. 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. Chart of Accounts CHART OF ACCOUNTS Rowland Company General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Prepaid Insurance 14 Supplies 15 Land 16 Building 17 Accumulated Depreciation-Building 18 Equipment 19 Accumulated Depreciation-Equipment LIABILITIES 21 Accounts Payable 22 Unearned Rent 23 Salaries and Wages Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends REVENUE 41 Fees Earned 42 Rent Revenue EXPENSES 51 Salaries and Wages Expense 52 Utilities Expense 53 Advertising Expense 54 Repairs Expense 55 Depreciation Expense-Building 56 Depreciation Expense-Equipment 57 Insurance Expense 58 Supplies Expense 59 Miscellaneous Expense Journal 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. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Adjusting Entries 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Adjusted Trial Balance 2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance. Rowland Company ADJUSTED TRIAL BALANCE August 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Prepaid Insurance 4 Supplies 5 Land 6 Building 7 Accumulated Depreciation-Building 8 Equipment 9 Accumulated Depreciation-Equipment 10 Accounts Payable 11 Unearned Rent 12 Salaries and Wages Payable 13 Common Stock 14 Retained Earnings 15 Dividends 16 Fees Earned 17 Rent Revenue 18 Salaries and Wages Expense 19 Utilities Expense 20 Advertising Expense 21 Repairs Expense 22 Depreciation Expense-Building 23 Depreciation Expense-Equipment 24 Insurance Expense 25 Supplies Expense 26 Miscellaneous Expense 27 Totals
Rowland Company is a small editorial services company owned and operated by Marlene Rowland. 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 1 Cash 7,500.00 2 Accounts Receivable 38,400.00 3 Prepaid Insurance 7,200.00 4 Supplies 1,980.00 5 Land 112,500.00 6 Building 150,250.00 7 Accumulated Depreciation-Building 87,550.00 8 Equipment 135,300.00 9 Accumulated Depreciation-Equipment 97,950.00 10 Accounts Payable 12,150.00 11 Unearned Rent 6,750.00 12 Common Stock 75,000.00 13 Retained Earnings 146,000.00 14 Dividends 15,000.00 15 Fees Earned 324,600.00 16 Salaries and Wages Expense 193,370.00 17 Utilities Expense 42,375.00 18 Advertising Expense 22,800.00 19 Repairs Expense 17,250.00 20 Miscellaneous Expense 6,075.00 21 Totals 750,000.00 750,000.00 The data needed to determine year-end adjustments are as follows: a. Unexpired insurance at August 31, $6,000. b. Supplies on hand at August 31, $480. c. Depreciation of building for the year, $7,500. d. Depreciation of equipment for the year, $4,150. e. Rent unearned at August 31, $1,550. f. Accrued salaries and wages at August 31, $3,200. g. Fees earned but unbilled on August 31, $11,330. 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. Chart of Accounts CHART OF ACCOUNTS Rowland Company General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Prepaid Insurance 14 Supplies 15 Land 16 Building 17 Accumulated Depreciation-Building 18 Equipment 19 Accumulated Depreciation-Equipment LIABILITIES 21 Accounts Payable 22 Unearned Rent 23 Salaries and Wages Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends REVENUE 41 Fees Earned 42 Rent Revenue EXPENSES 51 Salaries and Wages Expense 52 Utilities Expense 53 Advertising Expense 54 Repairs Expense 55 Depreciation Expense-Building 56 Depreciation Expense-Equipment 57 Insurance Expense 58 Supplies Expense 59 Miscellaneous Expense Journal 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. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Adjusting Entries 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Adjusted Trial Balance 2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance. Rowland Company ADJUSTED TRIAL BALANCE August 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Prepaid Insurance 4 Supplies 5 Land 6 Building 7 Accumulated Depreciation-Building 8 Equipment 9 Accumulated Depreciation-Equipment 10 Accounts Payable 11 Unearned Rent 12 Salaries and Wages Payable 13 Common Stock 14 Retained Earnings 15 Dividends 16 Fees Earned 17 Rent Revenue 18 Salaries and Wages Expense 19 Utilities Expense 20 Advertising Expense 21 Repairs Expense 22 Depreciation Expense-Building 23 Depreciation Expense-Equipment 24 Insurance Expense 25 Supplies Expense 26 Miscellaneous Expense 27 Totals
Chapter4: The Adjustment Process
Section: Chapter Questions
Problem 8EB: On July 1, a client paid an advance payment (retainer) of $10,000, to cover future legal services....
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Rowland Company is a small editorial services company owned and operated by Marlene Rowland. 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 | |
---|---|---|---|
1
|
Cash
|
7,500.00
|
|
2
|
|
38,400.00
|
|
3
|
Prepaid Insurance
|
7,200.00
|
|
4
|
Supplies
|
1,980.00
|
|
5
|
Land
|
112,500.00
|
|
6
|
Building
|
150,250.00
|
|
7
|
|
|
87,550.00
|
8
|
Equipment
|
135,300.00
|
|
9
|
Accumulated Depreciation-Equipment
|
|
97,950.00
|
10
|
Accounts Payable
|
|
12,150.00
|
11
|
Unearned Rent
|
|
6,750.00
|
12
|
Common Stock
|
|
75,000.00
|
13
|
|
|
146,000.00
|
14
|
Dividends
|
15,000.00
|
|
15
|
Fees Earned
|
|
324,600.00
|
16
|
Salaries and Wages Expense
|
193,370.00
|
|
17
|
Utilities Expense
|
42,375.00
|
|
18
|
Advertising Expense
|
22,800.00
|
|
19
|
Repairs Expense
|
17,250.00
|
|
20
|
Miscellaneous Expense
|
6,075.00
|
|
21
|
Totals
|
750,000.00
|
750,000.00
|
The data needed to determine year-end adjustments are as follows:
a. | Unexpired insurance at August 31, $6,000. |
b. | Supplies on hand at August 31, $480. |
c. | Depreciation of building for the year, $7,500. |
d. | Depreciation of equipment for the year, $4,150. |
e. | Rent unearned at August 31, $1,550. |
f. | Accrued salaries and wages at August 31, $3,200. |
g. | Fees earned but unbilled on August 31, $11,330. |
Required: | |
1. | Journalize the |
2. | Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance. |
Chart of Accounts
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rowland Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
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Journal
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.
PAGE 10
JOURNAL
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Adjusted Trial Balance
2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance.
Rowland Company
ADJUSTED TRIAL BALANCE
August 31, 2018
ACCOUNT TITLE | DEBIT | CREDIT | |
---|---|---|---|
1
|
Cash
|
|
|
2
|
Accounts Receivable
|
|
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3
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Prepaid Insurance
|
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4
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Supplies
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5
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Land
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6
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Building
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7
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Accumulated Depreciation-Building
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8
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Equipment
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9
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Accumulated Depreciation-Equipment
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10
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Accounts Payable
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11
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Unearned Rent
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12
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Salaries and Wages Payable
|
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13
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Common Stock
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14
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Retained Earnings
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15
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Dividends
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16
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Fees Earned
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17
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Rent Revenue
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18
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Salaries and Wages Expense
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19
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Utilities Expense
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20
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Advertising Expense
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21
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Repairs Expense
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22
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Depreciation Expense-Building
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23
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Depreciation Expense-Equipment
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24
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Insurance Expense
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25
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Supplies Expense
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26
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Miscellaneous Expense
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27
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Totals
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