Solve the following problem.
Charts of Accounts:
| CHART OF ACCOUNTS |
| Rowland Company |
| 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 |
| EQUITY |
|---|
| 31 | Common Stock | | 32 | Retained Earnings | | 33 | Dividends |
| | 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 |
|
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 | 7,500.00 | |
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 asfollows:
| a. | Unexpired insurance at August 31, $6,000. |
| b. | Supplies on hand at August 31, $480. |
| c. | Depreciation of building for the year, $7,500. |
| d. | Depreciation of equipment for the year, $4,150. |
| e. | Rent unearned at August 31, $1,550. |
| f. | Accrued salaries and wages at August 31, $3,200. |
| g. | Fees earned but unbilled on August 31, $11,330. |
| 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. |
