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.