Pitman Company is a small editorial services company owned and operated by Jan Pit- man. On October 31, 2019 the end of the current year, Pitman Company's accounting clerk prepared the following unadjusted trial balance: Pitman Company Unadjusted Triai Balance October 31, 2019 Debit Credit Balances Balances Cash 7,500 Accounts Receivable. 38,400 Prepaid Insurance Supplies. 7,200 1,980 Land 112,500 Building Accumulated Depreciation-Building Equipment.... . Accumulated Depreciation-Equipment Accounts Payable 300,250 87,550 135,300 97,950 12,150 Unearned Rent... 6,750 Jan Pitman, Capital Jan Pitman, Drawing. 371,000 15,000 Fees Earned.... 324,600 Salaries and Wages Expense.. Utilities Expense Advertising Expense 193,370 42,375 22,800 Repairs Expense.. Miscellaneous Expense 17,250 6,075 900,000 900,000 The data needed to determine year-end adjustments are as follows: Unexpired insurance at October 31, $600. Supplies on hand at October 31, $675. Depreciation of building for the year, $12,000 Depreciation of equipment for the year, $8,600. Unearned rent at October 31, $2,250. Accrued salaries and wages at October 31, $2,800. Fees earned but unbilled on October 31, $10,050. Instructions 1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable, Rent Revenue, Insurance Expense, Depreciation Expense-Building Depreciation Expense-Equipment, and Supplies Expense 2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance
Pitman Company is a small editorial services company owned and operated by Jan Pit- man. On October 31, 2019 the end of the current year, Pitman Company's accounting clerk prepared the following unadjusted trial balance: Pitman Company Unadjusted Triai Balance October 31, 2019 Debit Credit Balances Balances Cash 7,500 Accounts Receivable. 38,400 Prepaid Insurance Supplies. 7,200 1,980 Land 112,500 Building Accumulated Depreciation-Building Equipment.... . Accumulated Depreciation-Equipment Accounts Payable 300,250 87,550 135,300 97,950 12,150 Unearned Rent... 6,750 Jan Pitman, Capital Jan Pitman, Drawing. 371,000 15,000 Fees Earned.... 324,600 Salaries and Wages Expense.. Utilities Expense Advertising Expense 193,370 42,375 22,800 Repairs Expense.. Miscellaneous Expense 17,250 6,075 900,000 900,000 The data needed to determine year-end adjustments are as follows: Unexpired insurance at October 31, $600. Supplies on hand at October 31, $675. Depreciation of building for the year, $12,000 Depreciation of equipment for the year, $8,600. Unearned rent at October 31, $2,250. Accrued salaries and wages at October 31, $2,800. Fees earned but unbilled on October 31, $10,050. Instructions 1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable, Rent Revenue, Insurance Expense, Depreciation Expense-Building Depreciation Expense-Equipment, and Supplies Expense 2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Pitman Company is a small editorial services company owned and operated by Jan Pit-
man. On October 31, 2019 the end of the current year, Pitman Company's accounting
clerk prepared the following unadjusted trial balance:
Pitman Company
Unadjusted Triai Balance
October 31, 2019
Debit
Credit
Balances
Balances
Cash
7,500
Accounts Receivable.
38,400
Prepaid Insurance
Supplies.
7,200
1,980
Land
112,500
Building
Accumulated Depreciation-Building
Equipment.... .
Accumulated Depreciation-Equipment
Accounts Payable
300,250
87,550
135,300
97,950
12,150
Transcribed Image Text:Unearned Rent...
6,750
Jan Pitman, Capital
Jan Pitman, Drawing.
371,000
15,000
Fees Earned....
324,600
Salaries and Wages Expense..
Utilities Expense
Advertising Expense
193,370
42,375
22,800
Repairs Expense..
Miscellaneous Expense
17,250
6,075
900,000
900,000
The data needed to determine year-end adjustments are as follows:
Unexpired insurance at October 31, $600.
Supplies on hand at October 31, $675.
Depreciation of building for the year, $12,000
Depreciation of equipment for the year, $8,600.
Unearned rent at October 31, $2,250.
Accrued salaries and wages at October 31, $2,800.
Fees earned but unbilled on October 31, $10,050.
Instructions
1. Journalize the adjusting entries using the following additional accounts: Salaries and
Wages Payable, Rent Revenue, Insurance Expense, Depreciation Expense-Building
Depreciation Expense-Equipment, and Supplies Expense
2. Determine the balances of the accounts affected by the adjusting entries and prepare
an adjusted trial balance
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