Adjusting entries and adjusted trial balances Sears Editing Company is a small editorial services company owned and operated by Deloris Sears. On January 31, 20Y1, the end of the current year, Sears Editing Company’s accounting cleric prepared the following unadjusted trial balance: Sears Editing Company Unadjusted Trial Balance January 11, 20Y1 Debit Credit Balances Balances Cash 7,500 Accounts Receivable 38,400 Prepaid Insurance 7,200 Supplies 1,980 Land 112,500 Building 150,250 Accumulated Depreciation—Building 87,550 Equipment 135,300 Accumulated Depreciation—Equipment 97,950 Accounts Payable 12,150 Unearned Rent 6,750 Common Stock 75,000 Retained Earnings 146,000 Dividends 15,000 Fees Earned 324,600 Salaries and Wages Expense 193,370 Utilities Expense 42,375 Advertising Expense 22,800 Repairs Expense 17,250 Miscellaneous Expense 6,075 750,000 750,000 The data needed to determine year-end adjustment are as follows: • Unexpired insurance at January 31, $2,400. • Supplies on hand at January 31, $250. • Depreciation of building for the year, $6,600. • Depreciation of equipment for the year, $3,500, • Rent unearned at January 31, $2,750. • Accrued salaries and wages at January 31, $1,800. • Fees earned but unbilled on January 31, $15,000. Instructions 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. 2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance.

BuyFind

Corporate Financial Accounting

15th Edition
Carl Warren + 1 other
Publisher: Cengage Learning
ISBN: 9781337398169
BuyFind

Corporate Financial Accounting

15th Edition
Carl Warren + 1 other
Publisher: Cengage Learning
ISBN: 9781337398169
Chapter 3, Problem 3.5APR
Textbook Problem

Adjusting entries and adjusted trial balances

Sears Editing Company is a small editorial services company owned and operated by Deloris Sears. On January 31, 20Y1, the end of the current year, Sears Editing Company’s accounting cleric prepared the following unadjusted trial balance:

Sears Editing Company Unadjusted Trial Balance January 11, 20Y1
  Debit Credit
  Balances Balances
Cash 7,500  
Accounts Receivable 38,400  
Prepaid Insurance 7,200  
Supplies 1,980  
Land 112,500  
Building 150,250  
Accumulated Depreciation—Building   87,550
Equipment 135,300  
Accumulated Depreciation—Equipment   97,950
Accounts Payable   12,150
Unearned Rent   6,750
Common Stock   75,000
Retained Earnings   146,000
Dividends 15,000  
Fees Earned   324,600
Salaries and Wages Expense 193,370  
Utilities Expense 42,375  
Advertising Expense 22,800  
Repairs Expense 17,250  
Miscellaneous Expense 6,075  
  750,000 750,000

  The data needed to determine year-end adjustment are as follows:

• Unexpired insurance at January 31, $2,400.

• Supplies on hand at January 31, $250.

• Depreciation of building for the year, $6,600.

• Depreciation of equipment for the year, $3,500,

• Rent unearned at January 31, $2,750.

• Accrued salaries and wages at January 31, $1,800.

• Fees earned but unbilled on January 31, $15,000.

  Instructions

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.

2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance.

Expert Solution

Want to see the full answer?

Check out a sample textbook solution.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 3 Solutions

Corporate Financial Accounting
Ch. 3 - Account requiring adjustment Indicate with a Yes...Ch. 3 - Type of adjustment Classify the following items as...Ch. 3 - Adjustment for accrued revenues At the end of the...Ch. 3 - Adjustment for accrued expense Prospect Realty Co....Ch. 3 - Adjustment for unearned revenue On June 1, 20Y2,...Ch. 3 - Adjustment for prepaid expense The prepaid...Ch. 3 - Adjustment for depreciation The estimated amount...Ch. 3 - Effect of omitting adjustments For the year ending...Ch. 3 - Effect of errors on adjusted trial balance For...Ch. 3 - Vertical analysis Two income statements for Cornea...Ch. 3 - Classifying types of adjustments Classify the...Ch. 3 - Classifying adjusting entries The following...Ch. 3 - Adjusting entry for accrued fees At the end of the...Ch. 3 - Effect of omitting adjusting entry The adjusting...Ch. 3 - Adjusting entries for accrued salaries Paradise...Ch. 3 - Determining wages paid The wages payable and wages...Ch. 3 - Effect of omitting adjusting entry Accrued...Ch. 3 - Effect of omitting adjusting entry When preparing...Ch. 3 - Adjusting entries for unearned fees The balance in...Ch. 3 - Effect of omitting adjusting entry At the end of...Ch. 3 - Adjusting entry for supplies The balance in the...Ch. 3 - Determining supplies purchased The supplies and...Ch. 3 - Effect of omitting adjusting entry At March 31,...Ch. 3 - Adjusting entries for prepaid insurance The...Ch. 3 - Adjusting entries for prepaid insurance The...Ch. 3 - Adjusting entries for unearned and accrued fees...Ch. 3 - Adjusting entries for p repaid and accrued taxes...Ch. 3 - Adjustment for depreciation The estimated amount...Ch. 3 - Determining fixed assets book value The balance in...Ch. 3 - Book value of fixed assets In a recent balance...Ch. 3 - Effects of errors on financial statements For a...Ch. 3 - Effects of errors on financial statements For a...Ch. 3 - Effects of errors on financial statements The...Ch. 3 - Effects of errors on financial statements If the...Ch. 3 - Adjusting entries for depreciation; effect of...Ch. 3 - Adjusting entries from trial balances The...Ch. 3 - Corrected trial balance totals, 369,000 Adjusting...Ch. 3 - Adjusting entries On March 31, the following data...Ch. 3 - Adjusting entries Selected account balances before...Ch. 3 - Adjusting entries Trident Repairs Service, an...Ch. 3 - Adjusting entries Good Note Company specializes in...Ch. 3 - Adjusting entries and adjusted trial balances...Ch. 3 - Adjusting entries and errors At the end of April,...Ch. 3 - Adjusting entries On May 31, the following data...Ch. 3 - Adjusting entries Selected account balances before...Ch. 3 - Adjusting entries Crazy Mountain Outfitters Co.,...Ch. 3 - Adjusting entries The Signage Company specializes...Ch. 3 - Adjusting entries and adjusted trial balances...Ch. 3 - Adjusting entries and errors At the end of August,...Ch. 3 - Continuing Problem 3. Total of Debit column:...Ch. 3 - Analyze Amazon.com Amazon.com, Inc. (AMZN) is the...Ch. 3 - Analyze Pandora Media Pandora Media, Inc. (P)...Ch. 3 - Analyze World Wrestling Entertainment World...Ch. 3 - Analyze Chipotle Mexican Grill Chipotle Mexican...Ch. 3 - Analyze Nike The following data are taken from...Ch. 3 - Analyze and Compare ATT and Verizon Communications...Ch. 3 - Ethics in Action Chris P. Bacon is the chief...Ch. 3 - Loan application Daryl Kirby opened Squid Realty...Ch. 3 - Communication Delta Air Lines is a major passenger...Ch. 3 - Adjustments and financial statements Several years...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Should an economic model describe reality exactly?

Principles of Economics (MindTap Course List)

What are some examples of non-value-added lead time?

Financial And Managerial Accounting

What rules govern data collection?

Accounting Information Systems

What is product diversity?

Managerial Accounting: The Cornerstone of Business Decision-Making

What is a partial dependency?

Pkg Acc Infor Systems MS VISIO CD

Begin by looking at the historical performance of the overall stock market. Typically, on most of the financial...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What are the two main causes of market failure? Give an example of each.

Principles of Macroeconomics (MindTap Course List)

What is EVA? How does it differ from ROI and residual income?

Cornerstones of Cost Management (Cornerstones Series)