Reference no: EM13534324

Adjusting entries and adjusted trial balances

Dickens Company is a small editorial services company owned and operated by Monica Baker. On October 31, 2014, the end of the current year, Dickens Company's accounting clerk prepared the unadjusted trial balance shown below.

Dickens Company Unadjusted Trial Balance October 31, 2014
	Debit Balances	Credit 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
Capital 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 adjustments are as follows:

1. Unexpired insurance at October 31, $5,400.

2. Supplies on hand at October 31, $375.

3. Depreciation of building for the year, $6,000.

4. Depreciation of equipment for the year, $3,000.

5. Rent unearned at October 31, $1,350.

6. Accrued salaries and wages at October 31, $2,900.

7. Fees earned but unbilled on October 31, $18,600.

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.