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.
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.
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....
Related questions
Question
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. |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning