Rowland Company is a small editorial services company owned and operated by Marl
ID: 2421712 • Letter: R
Question
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
1
Cash
7,500.00
2
Accounts Receivable
38,400.00
3
Prepaid Insurance
7,200.00
4
Supplies
1,980.00
5
Land
112,500.00
6
Building
150,250.00
7
Accumulated Depreciation-Building
87,550.00
8
Equipment
135,300.00
9
Accumulated Depreciation-Equipment
97,950.00
10
Accounts Payable
12,150.00
11
Unearned Rent
6,750.00
12
Common Stock
75,000.00
13
Retained Earnings
146,000.00
14
Dividends
15,000.00
15
Fees Earned
324,600.00
16
Salaries and Wages Expense
193,370.00
17
Utilities Expense
42,375.00
18
Advertising Expense
22,800.00
19
Repairs Expense
17,250.00
20
Miscellaneous Expense
6,075.00
21
Totals
750,000.00
750,000.00
The data needed to determine year-end adjustments are as follows:
X
Journal
ACCOUNT TITLE DEBIT CREDIT1
Cash
7,500.00
2
Accounts Receivable
38,400.00
3
Prepaid Insurance
7,200.00
4
Supplies
1,980.00
5
Land
112,500.00
6
Building
150,250.00
7
Accumulated Depreciation-Building
87,550.00
8
Equipment
135,300.00
9
Accumulated Depreciation-Equipment
97,950.00
10
Accounts Payable
12,150.00
11
Unearned Rent
6,750.00
12
Common Stock
75,000.00
13
Retained Earnings
146,000.00
14
Dividends
15,000.00
15
Fees Earned
324,600.00
16
Salaries and Wages Expense
193,370.00
17
Utilities Expense
42,375.00
18
Advertising Expense
22,800.00
19
Repairs Expense
17,250.00
20
Miscellaneous Expense
6,075.00
21
Totals
750,000.00
750,000.00
Explanation / Answer
Date Account Title Dr CR in $ 31-Aug Insurance expense 1200 Prepaid Insurance 1200 Supplies Expenses 1,500 Supplies 1500 Depreciation -Building 7500 Depreciation-Equipment 4150 Accumulated Depreciation-Building 7500 Accumulated Depreciation-Equipment 4150 Unearned Rent 5200 Rent Revenue 5200 Salaries & Wages expense 3200 Accurred salaries & wages 3200 Accounts receivable 11330 Fees earned 11330 ADJUSTED TRIAL BALANCE 31-Aug-16 ACCOUNT TITLE DEBIT CREDIT 1 Cash 7,500.00 2 Accounts Receivable 49,730.00 3 Prepaid Insurance 6,000.00 4 Supplies 480.00 5 Land 112,500.00 6 Building 150,250.00 7 Accumulated Depreciation-Building 95,050.00 8 Equipment 135,300.00 9 Accumulated Depreciation-Equipment 102,100.00 10 Accounts Payable 12,150.00 11 Unearned Rent 1,550.00 Accrued salaries & Wages 3,200.00 12 Common Stock 75,000.00 13 Retained Earnings 146,000.00 14 Dividends 15,000.00 15 Fees Earned 335,930.00 Rent Revenue 5,200.00 16 Salaries and Wages Expense 196,570.00 17 Utilities Expense 42,375.00 18 Advertising Expense 22,800.00 Supplies expense 1,500.00 19 Repairs Expense 17,250.00 Inssurance Expense 1,200.00 Depreciation -Building 7500 Depreciation-Equipment 4150 20 Miscellaneous Expense 6,075.00 21 Totals 776,180.00 776,180.00
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