Rowland Company is a small editorial services company owned and operated by Marl
ID: 2493832 • 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
7,755.00
2
Accounts Receivable
38,655.00
3
Prepaid Insurance
7,380.00
4
Supplies
2,065.00
5
Land
111,050.00
6
Building
153,300.00
7
Accumulated Depreciation-Building
86,065.00
8
Equipment
140,000.00
9
Accumulated Depreciation-Equipment
97,335.00
10
Accounts Payable
12,090.00
11
Unearned Rent
6,385.00
12
Common Stock
75,410.00
13
Retained Earnings
155,595.00
14
Dividends
14,910.00
15
Fees Earned
327,650.00
16
Salaries and Wages Expense
197,220.00
17
Utilities Expense
42,205.00
18
Advertising Expense
22,795.00
19
Repairs Expense
16,910.00
20
Miscellaneous Expense
6,285.00
21
Totals
760,530.00
760,530.00
The data needed to determine year-end adjustments are as follows:
ACCOUNT TITLE DEBIT CREDIT1
Cash
7,755.00
2
Accounts Receivable
38,655.00
3
Prepaid Insurance
7,380.00
4
Supplies
2,065.00
5
Land
111,050.00
6
Building
153,300.00
7
Accumulated Depreciation-Building
86,065.00
8
Equipment
140,000.00
9
Accumulated Depreciation-Equipment
97,335.00
10
Accounts Payable
12,090.00
11
Unearned Rent
6,385.00
12
Common Stock
75,410.00
13
Retained Earnings
155,595.00
14
Dividends
14,910.00
15
Fees Earned
327,650.00
16
Salaries and Wages Expense
197,220.00
17
Utilities Expense
42,205.00
18
Advertising Expense
22,795.00
19
Repairs Expense
16,910.00
20
Miscellaneous Expense
6,285.00
21
Totals
760,530.00
760,530.00
Explanation / Answer
1)
2)
Journal Entries S.NO. Accounts Debit $ Credit $ a Insurance Expense 1,365 Prepaid Insurance 1,365 b Depreciation Expense - Building 7,740 Accumulated Depreciation - Building 7,740 c Depreciation Expense - Equipment 3,835 Accumulated Depreciation - Equipment 3,835 d Unearned rent 4,760 Rent Revenue 4,760 e Salaries and Wages Expense 2,720 Accrued Salaries and Wages 2,720 f Accounts Receivable 11,520 Unbilled Revenue 11,520Related Questions
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