Cambridge Company is a small editorial services company owned and operated by Dave Maier. On December 31, 2008, the end of the current year, Cambridge Company's accounting clerk prepared the unadjusted trial balance shown at the top of the following page. The data needed to determine year end adjustments are as follows:
a. Unexpired insurance at December 31, $2,700.
b. Supplies on hand at December 31, $480.
c. Depreciation of building for the year, $1,600.
d. Depreciation of equipment for the year, 84,400.
e. Rent unearned at December 31, $3,250.
f. Accrued salaries and wages at December 31, $2,800.
g. Fees earned but unbilled on December 31, $6,200. Instructions
Cambridge Company Unadjusted Trial Balance December 31, 2008
| |
Debit Balances
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Credit Balances
|
|
Cash
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5,550
|
|
|
Accounts Receivable
|
28,350
|
|
|
Prepaid Insurance
|
7,200
|
|
|
Supplies
|
1,980
|
|
|
Land
|
112,500
|
|
|
Building
|
212,250
|
|
|
Accumulated Depreciation - Building
|
|
137,550
|
|
Equipment
|
135,300
|
|
|
Accumulated Depreciation - Equipment
|
|
97,950
|
|
Accounts Payable
|
|
12,150
|
|
Unearned Rent
|
|
6,750
|
|
Dave Maier, Capital
|
|
201,000
|
|
Dave Maier, Drawing
|
15,000
|
|
|
Fees Earned
|
|
294,600
|
|
Salaries and Wages Expense
|
143,370
|
|
|
Utilities Expense
|
42,375
|
|
|
Advertising Expense
|
22,800
|
|
|
Repairs Expense
|
17,250
|
|
|
Miscellaneous Expense
|
6,075
|
|
| |
750,000
|
750,000
|
1. Journalize the adjusting entries. Add additional accounts as needed.
2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance.