Rowland company is a small editorial services company owned


Rowland Company is a small editorial services company owned and operated by Marlene Rowland. On August 31, 2016, the end of the current year, Rowland Company's accounting clerk prepared the following unadjusted trial balance:

Rowland Company Unadjusted Trial Balance August 31, 2016

Debit Balance $

Credit Balance $

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 adjustments are as follows:

a. Unexpired insurance at August 31, $6,000.

b. Supplies on hand at August 31, $480.

c. Depreciation of building for the year, $7,500.

d. Depreciation of equipment for the year, $4,150.

e. Rent unearned at August 31, $1,550.

f. Accrued salaries and wages at August 31, $3,200.

g. Fees earned but unbilled on August 31, $11,330.

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.

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Financial Accounting: Rowland company is a small editorial services company owned
Reference No:- TGS01295349

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