Rowland Company is a small editorial services company owned and operated by Marl
ID: 341573 • Letter: R
Question
Rowland Company is a small editorial services company owned and operated by Marlene Rowland. On August 31, 2018, the end of the current year, Rowland Company’s accounting clerk prepared the following unadjusted trial balance:
Rowland Company
UNADJUSTED TRIAL BALANCE
August 31, 2018
1
Cash
7,655.00
2
Accounts Receivable
38,345.00
3
Prepaid Insurance
7,075.00
4
Supplies
2,290.00
5
Land
113,500.00
6
Building
149,450.00
7
Accumulated Depreciation-Building
87,905.00
8
Equipment
133,250.00
9
Accumulated Depreciation-Equipment
96,435.00
10
Accounts Payable
11,860.00
11
Unearned Rent
6,705.00
12
Common Stock
74,530.00
13
Retained Earnings
146,290.00
14
Dividends
14,690.00
15
Fees Earned
328,600.00
16
Salaries and Wages Expense
198,220.00
17
Utilities Expense
42,120.00
18
Advertising Expense
22,315.00
19
Repairs Expense
17,210.00
20
Miscellaneous Expense
6,205.00
21
Totals
752,325.00
752,325.00
The data needed to determine year-end adjustments are as follows:
ACCOUNT TITLE DEBIT CREDIT1
Cash
7,655.00
2
Accounts Receivable
38,345.00
3
Prepaid Insurance
7,075.00
4
Supplies
2,290.00
5
Land
113,500.00
6
Building
149,450.00
7
Accumulated Depreciation-Building
87,905.00
8
Equipment
133,250.00
9
Accumulated Depreciation-Equipment
96,435.00
10
Accounts Payable
11,860.00
11
Unearned Rent
6,705.00
12
Common Stock
74,530.00
13
Retained Earnings
146,290.00
14
Dividends
14,690.00
15
Fees Earned
328,600.00
16
Salaries and Wages Expense
198,220.00
17
Utilities Expense
42,120.00
18
Advertising Expense
22,315.00
19
Repairs Expense
17,210.00
20
Miscellaneous Expense
6,205.00
21
Totals
752,325.00
752,325.00
Explanation / Answer
Books of Rowland Company
Journal Entires
Insurance Expense A/c Dr 1,215
To Prepaid Insurance 1,215
(Being insurance expense recorded)
Supplies Expense A/c Dr 1,745
To Supplies A/c 1,745
(Being supplies consumed during the period recorded)
Depreciation Expense—Building A/c Dr 7,985
To Accumulated Depreciation-Building A/c $7,985
(Being Depreciation provided for on Building)
Depreciation Expense—Equipment A/c Dr 4,080
To Accumulated Depreciation-Equipment 4,080
(Being Depreciation provided for on Equipment)
Rent Unearned A/c Dr 5,560
To Rent Revenue A/c 5,560
(Being Income recorded.
Salaries and Wages Expense A/c Dr 3,490
To Salaries and Wages Payable A/c 3,490
(Being salaries accrued provided for)
Accounts Receivale A/c Dr 11,640
To Fees Earned A/c 11,640
(Being entry made for fees earned but unbilled)
Rowland Company
UNADJUSTED TRIAL BALANCE
August 31, 2018
ACCOUNT TITLE
DEBIT
CREDIT
1
Cash
7,655.00
2
Accounts Receivable
49,985.00
3
Prepaid Insurance
5,860.00
4
Supplies
545.00
5
Land
113,500.00
6
Building
149,450.00
7
Accumulated Depreciation-Building
95,890.00
8
Equipment
133,250.00
9
Accumulated Depreciation-Equipment
100,515.00
10
Accounts Payable
11,860.00
11
Unearned Rent
1,145.00
12
Common Stock
74,530.00
13
Retained Earnings
146,290.00
14
Dividends
14,690.00
15
Fees Earned
340,240.00
16
Salaries and Wages Expense
201,710.00
17
Utilities Expense
42,120.00
18
Advertising Expense
22,315.00
19
Repairs Expense
17,210.00
20
Miscellaneous Expense
6,205.00
21
Insurance Expense
1,215.00
22
Supplies Expense
1,745.00
23
Depreciation Expense—Building
7,985.00
24
Depreciation Expense—Equipment
4,080.00
25
Rent Revenue
5,560
26
Salaries and Wages Payable
3,490
27
TOTALS
779,520
779,520
ACCOUNT TITLE
DEBIT
CREDIT
1
Cash
7,655.00
2
Accounts Receivable
49,985.00
3
Prepaid Insurance
5,860.00
4
Supplies
545.00
5
Land
113,500.00
6
Building
149,450.00
7
Accumulated Depreciation-Building
95,890.00
8
Equipment
133,250.00
9
Accumulated Depreciation-Equipment
100,515.00
10
Accounts Payable
11,860.00
11
Unearned Rent
1,145.00
12
Common Stock
74,530.00
13
Retained Earnings
146,290.00
14
Dividends
14,690.00
15
Fees Earned
340,240.00
16
Salaries and Wages Expense
201,710.00
17
Utilities Expense
42,120.00
18
Advertising Expense
22,315.00
19
Repairs Expense
17,210.00
20
Miscellaneous Expense
6,205.00
21
Insurance Expense
1,215.00
22
Supplies Expense
1,745.00
23
Depreciation Expense—Building
7,985.00
24
Depreciation Expense—Equipment
4,080.00
25
Rent Revenue
5,560
26
Salaries and Wages Payable
3,490
27
TOTALS
779,520
779,520
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