Adjusting Entries and Adjusted Trial Balances Rowland Company is a small editori

Question

Adjusting Entries and Adjusted Trial Balances

Rowland Company is a small editorial services company owned and operated by Fran Briggs. On August 31, 2018, the end of the current year, Rowland Company's accounting clerk prepared the following unadjusted trial balance:

The data needed to determine year-end adjustments are as follows:

Required:

Unexpired insurance at August 31, $4,740.

Supplies on hand at August 31, $580.

Depreciation of building for the year, $3,130.

Depreciation of equipment for the year, $2,720.

Rent unearned at August 31, $1,760.

Accrued salaries and wages at August 31, $3,070.

Fees earned but unbilled on August 31, $18,000.

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. If an amount box does not require an entry, leave it blank.

Rowland Company Unadjusted Trial Balance August 31, 2018 Debit
Balances Credit
Balances Cash 4,180 Accounts Receivable 37,930 Prepaid Insurance 7,070 Supplies 1,930 Land 111,540 Building 201,240 Accumulated Depreciation—Building 136,290 Equipment 134,040 Accumulated Depreciation—Equipment 97,080 Accounts Payable 11,890 Unearned Rent 6,750 Common Stock 80,000 Retained Earnings 138,600 Dividends 14,790 Fees Earned 321,450 Salaries and Wages Expense 191,580 Utilities Expense 42,110 Advertising Expense 22,500 Repairs Expense 17,040 Miscellaneous Expense 6,110 792,060 792,060 CSeoure htt:/2.cengsqenow Chapter 03 Homework (Application) Adjusting Entries and Adjusted Tial Balances Re lard Company a ;mall tarial ser comnar r owned and anerated by Fran Fia an A oust 31 7018, tha d at the rum nt Year, Row and Ctmpany' accourtin drk racared th tnio ng na stat trial balanta 7 FX Rowland Company Unadjusted Trial Balance August 31, 2013 3 EX 0303 BLANKSHEETAL . 37,930 Prepaid Insuronc 7,070 8. EX.03 19 ALGO 9. EX.03-21 ALGO 10. CX03 26ILANKSIICLT.A 11 FX03-77 RI ANKSHFFTA-. Land 111,540 Building 135,290 97,080 Accounts Fayable 12. PR.03-01.BLANKSHEETA. Uneamed Rert 6,730 13. PR.03 02.DLANKSI ILLTA. Rctained Earning 133,000 PFR 03-03 A 1 PR-0A Fees Eamed Salaries and vap Expans ULkies Lxpense Adverizing Expenzc 01.580 42.110 17.04 Miscelaneous Expense 92,UOU Check Ny Wk Progress: 15M5 terms .ssignment Score: 61.32% Email Irstructor Save and Exit Submit Assignment for Grading O lype hene to search ti ^ 0 ING 10:44 PM

Explanation / Answer

DR CR a Insurance expense 2330 Prepaid Insurance 2330 (7070-4740) b Supplies Expense 1350 Supplies 1350 (1930-580) c Depreciation Expense 3130 Accumulated Depreciation—Building 3130 d Depreciation Expense 2720 Accumulated Depreciation—Equipment 2720 e Rent unearned 4990 Rent Revenue 4990 f Salaries and Wages Expense 3070 Salaries and Wages Payable 3070 g Accounts Receivable 18000 Fees Earned 18000 Rowland Company Unadjusted Trial Balance August 31, 2018 Debit Credit Cash 4,180 Accounts Receivable 55,930 Prepaid Insurance 4,740 Supplies 580 Land 1,11,540 Building 2,01,240 Accumulated Depreciation—Building 1,39,420 Equipment 1,34,040 Accumulated Depreciation—Equipment 99,800 Accounts Payable 11,890 Salaries and Wages Payable 3,070 Unearned Rent 1,760 Common Stock 80,000 Retained Earnings 1,38,600 Dividends 14,790 Fees Earned 3,39,450 Rent Revenue 4,990 Salaries and Wages Expense 1,94,650 Supplies Expense 1,350 Insurance expense 2,330 Utilities Expense 42,110 Advertising Expense 22,500 Repairs Expense 17,040 Depreciation Expense 5,850 Miscellaneous Expense 6,110 Total 8,18,980 8,18,980

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