Determine the balances of the accounts affected by the


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 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.

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Cost Accounting: Determine the balances of the accounts affected by the
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