Dickens Company is a small editorial services company owned and operated by Moni
ID: 2418389 • Letter: D
Question
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.
The data needed to determine year-end adjustments are as follows:
Unexpired insurance at October 31, $5,400.
Supplies on hand at October 31, $375.
Depreciation of building for the year, $6,000.
Depreciation of equipment for the year, $3,000.
Rent unearned at October 31, $1,350.
Accrued salaries and wages at October 31, $2,900.
Fees earned but unbilled on October 31, $18,600.
Required:
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.
a.
b.
c.
d.
e.
f.
g.
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.
Dickens Company
Adjusted Trial Balance
October 31, 2014
Debit Balances
Credit Balances
Total
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Hint(s)
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.
a.
b.
c.
d.
e.
f.
g.
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.
Dickens Company
Adjusted Trial Balance
October 31, 2014
Debit Balances
Credit Balances
Total
Explanation / Answer
Answer:1
a. Unexpired insurance at October 31, $5,400.
Dr Insurance Expense 1,800
Cr Prepaid Insurance 1,800 (7200-5400)
b. Supplies on hand at October 31, $375.
Dr Supplies Expense 1,605
Cr Supplies 1,605 (1980-375)
c. Depreciation of building for the year, $6,000.
Dr Depreciation Expense--Building 6000
Cr Accumulated Depreciation--Building 6000
d. Depreciation of equipment for the year, $3,000.
Dr Depreciation Expense--Equipment 3000
Cr Accumulated Depreciation--Equipment 3,000
e. Rent unearned at October 31, $1,350.
Dr Unearned Rent 5400
Cr Rent Revenue 5400 (6750-1350)
f. Accrued salaries and wages at October 31, $2,900.
Dr Salaries and Wages Expense 2900
Cr Salaries and Wages Payable 2900
g. Fees earned but unbilled on October 31, $18,600.
Dr Accounts Receivable 18600
Cr Fees Earned 18600
Answer:2.
Dickens Company Adjusted Trial Balance Oct 31,2014 Particulars Debit Credit Cash 7500 Accounts receivable 57000 Prepaid insurance 5400 Supplies 375 Land 112500 Building 150250 Accumulated dep-Building 93550 Equipment 135300 Accumulated dep-equipment 100950 Accounts payable 12150 Unearned rent 1350 Capital stock 75000 Salary and wage Payable 2900 Retained earnings 146000 Dividend 15000 Fees earned 343200 Rent revenue 5400 Salary and wage expense 196270 Depreciation on building 6000 Dep on equipment 3000 Utilities expense 42375 Insurance expense 1800 Supplies expense 1605 Advertising expense 22800 Repairs expense 17250 Miscellaneous expense 6075 Total 780500 780500Related Questions
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