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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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