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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Pitman Company is a small editorial services company owned and operated by Jan Pitman. On October 31, 2019, the end of the current year, Pitman Company's accounting clerk prepared the following unadjusted trial balance:

Pitman Company
Unadjusted Trial Balance
October 31, 2019
  Debit
Balances
Credit
Balances
Cash 3,830      
Accounts Receivable 34,780      
Prepaid Insurance 6,490      
Supplies 1,770      
Land 102,290      
Building 264,590      
Accumulated Depreciation—Building     124,990  
Equipment 122,920      
Accumulated Depreciation—Equipment     89,020  
Accounts Payable     10,910  
Unearned Rent     6,190  
Jan Pitman, Capital     280,500  
Jan Pitman, Drawing 13,560      
Fees Earned     294,780  
Salaries and Wages Expense 175,690      
Utilities Expense 38,620      
Advertising Expense 20,630      
Repairs Expense 15,620      
Miscellaneous Expense 5,600      
  806,390   806,390  

The data needed to determine year-end adjustments are as follows:

    • Unexpired insurance at October 31, $4,350.
    • Supplies on hand at October 31, $530.
    • Depreciation of building for the year, $2,870.
    • Depreciation of equipment for the year, $2,490.
    • Unearned rent at October 31, $1,610.
    • Accrued salaries and wages at October 31, $2,810.
    • Fees earned but unbilled on October 31, $16,510.

Required:

 

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.

Pitman Company
Adjusted Trial Balance
October 31, 2019
  Debit Balances Credit Balances
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
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