Dickens company is a small editorial services company owned and operated by Moni
ID: 2418977 • 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. Instructions journalize .he adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation Expense-Building; Depreciation Expense-Equipment; and Supplies Expense. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance.Explanation / Answer
Insurance expenses A/C
Prepaid Insurance
5400
Ending balance
5400
Total
5400
5400
Supplies expenses A/C
Supplies
375
Ending balance
375
Total
375
375
Depreciation of building A/C
Accumulated depreciation of building
6000
Ending balance
6,000
Total
6000
6000
Depreciation of Equipment A/C
Accumulated depreciation of equipment
3000
Ending balance
3000
Total
3000
3000
Rent Revenue A/C
Unearned rent
1350
Ending balance
1350
Total
1350
1350
Salaries and wages payable A/C
Accrued salaries and wages
2900
Ending balance
2900
Total
2900
2900
Fees Earned A/C
Opening balance
324,600
Account receivables
18,600
Ending balance
343,200
Total
343,200
343,200
Adjusted Trail balance
Debit
Credit
Cash
7,500
Accounts receivable
57,000
Prepaid insurance
18,000
Insurance expenses
5,400
Supplies
1,605
Supplies expenses
375
Land
112,500
Building
150,250
Equipment
135,300
Monica baker, Drawings
15,000
Salaries and wages expense
196,270
Utilities
42,375
Advertisements
22,800
Repairs expenses
17,250
Miscellaneous expenses
6,075
Depreciation of building expenses
6,000
Depreciation of equipment expenses
3,000
Fees earned
343,200
Accrued salaries and wages
2,900
Monica baker, Capital
221,000
Accounts payable
12,150
Accumulated depreciation - building
93,550
Accumulated depreciation – equipment
100,950
Unearned rent
5,400
Rent revenue
1,350
Total
780,500
780,500
Insurance expenses A/C
Prepaid Insurance
5400
Ending balance
5400
Total
5400
5400
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