Reference no: EM132381440
Question
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 following unadjusted trial balance:
Pitman Company
UNADJUSTED TRIAL BALANCE
October 31, 2019
ACCOUNT TITLE
DEBIT CREDIT
1 Cash 7,135.00
2 Accounts Receivable 37,950.00
3 Prepaid Insurance 7,045.00
4 Supplies 1,895.00
5 Land 116,150.00
6 Building 148,750.00
7 Accumulated Depreciation-Building 88,280.00
8 Equipment 133,800.00
9 Accumulated Depreciation-Equipment 97,280.00
10 Accounts Payable 12,145.00
11 Unearned Rent 6,970.00
12 Jan Pitman, Capital 222,685.00
13 Jan Pitman, Drawing 15,300.00
14 Fees Earned 320,650.00
15 Salaries and Wages Expense 190,770.00
16 Utilities Expense 42,730.00
17 Advertising Expense 22,595.00
18 Repairs Expense 17,420.00
19 Miscellaneous Expense 6,470.00
20 Totals 748,010.00 748,010.00
The data needed to determine year-end adjustments are as follows:
a. Unexpired insurance at October 31, $6,080.
b. Supplies on hand at October 31, $470.
c. Depreciation of building for the year, $7,245.
d. Depreciation of equipment for the year, $4,140.
e. Unearned rent at October 31, $1,200.
f. Accrued salaries and wages at October 31, $3,550.
g. Fees earned but unbilled on October 31, $11,125.
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.