80.2K

Verified Solution

Link Copied!

Sears Editing Company is a small editorial services company owned and operated by Deloris Sears. On January 31, 20Y1, the end of the current year, Sears Edeng Companys accounting cleik prepared the following unadjusted trial balance: 14 Retained Earnings 15 Dividends 16 Fees Earned 17 Rent Revenue 18 Salaries and Wages Expense 19 Utilities Expense 20 Advertising Expense 21 Repairs Expense 22 Depreciation Expense-Building 23 Depreciation Expense-Equipment 24 Insurance Expense 25 Supplies Expense 26 Miscellaneous Expense 27. Totals The data needed to determine year-end adjustments are as follows: a. Unexpired insurance at January 31,$2,400. b. Supplies on hand at January 31,$250. c. Depreciation of building for the year, $6,600. d. Depreciation of equipment for the year, $3,500. e. Rent unearned at January 31,$2,750. 1. Accrued salaries and wages at January 31,$1,800. g. Fees earned but unbilled on January 31,$15,000. 2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted tr Pace to 1. Joumalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Rovenve; Insurance Expense: Depreciation Expense - Building: Depreciation Expense - Equipment; and Supplies Expense. Reter to the Chart of Accounts for exact wording of account titles. 2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance. General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Prepaid Insurance 14 Supplies 15 Land 16 Building 17 Accumulated Depreciation-Building 18 Equipment 19 Accumulated Depreciation-Equipment LIABILITIES 21 Accounts Payable 22 Unearned Rent 23 Salaries and Wages Payable REVENUE 41 Fees Earned 42 Rent Revenue EXPENSES 51 Salaries and Wages Expense 52 Utilities Expense 53 Advertising Expense 54 Repairs Expense 55 Depreciation Expense-Building 56 Depreciation Expense-Equipment 57 Insurance Expense 58 Supplies Expense 59 Miscellaneous Expense EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends

Answer & Explanation Solved by verified expert

See Answer