Rowland Company is a small editorial services company owned andoperated by Marlene Rowland. On August 31, 2018, the end of thecurrent year, Rowland Company’s accounting clerk prepared thefollowing unadjusted trial balance:
Rowland Company
UNADJUSTED TRIAL BALANCE
August 31, 2018
| ACCOUNT TITLE | DEBIT | CREDIT |
|---|
1 | Cash | 7,420.00 | |
2 | Accounts Receivable | 38,360.00 | |
3 | Prepaid Insurance | 7,320.00 | |
4 | Supplies | 2,390.00 | |
5 | Land | 117,000.00 | |
6 | Building | 154,900.00 | |
7 | Accumulated Depreciation-Building | | 85,745.00 |
8 | Equipment | 130,900.00 | |
9 | Accumulated Depreciation-Equipment | | 97,550.00 |
10 | Accounts Payable | | 11,735.00 |
11 | Unearned Rent | | 7,130.00 |
12 | Common Stock | | 74,895.00 |
13 | Retained Earnings | | 152,750.00 |
14 | Dividends | 14,705.00 | |
15 | Fees Earned | | 325,550.00 |
16 | Salaries and Wages Expense | 193,870.00 | |
17 | Utilities Expense | 42,220.00 | |
18 | Advertising Expense | 22,740.00 | |
19 | Repairs Expense | 17,455.00 | |
20 | Miscellaneous Expense | 6,075.00 | |
21 | Totals | 755,355.00 | 755,355.00 |
The data needed to determine year-end adjustments are asfollows:
| a. | Unexpired insurance at August 31, $5,850. |
| b. | Supplies on hand at August 31, $310. |
| c. | Depreciation of building for the year, $7,750. |
| d. | Depreciation of equipment for the year, $4,220. |
| e. | Rent unearned at August 31, $1,495. |
| f. | Accrued salaries and wages at August 31, $3,040. |
| g. | Fees earned but unbilled on August 31, $11,185. |
| Required: |
| 1. | Journalize the adjusting entries using the following additionalaccounts: Salaries and Wages Payable; Rent Revenue; InsuranceExpense; Depreciation Expense—Building; DepreciationExpense—Equipment; and Supplies Expense. Refer to the Chart ofAccounts for exact wording of account titles. |
| 2. | Determine the balances of the accounts affected by theadjusting entries, and prepare an adjusted trial balance. |
