Question

Rowland Company is a small editorial services company owned and operated by Fran Briggs. On August 31, 2018, the end of the current year, Rowland Company's accounting clerk prepared the following unadjusted trial balance:

Rowland Company
Unadjusted Trial Balance
August 31, 2018
	Debit Balances		Credit Balances
Cash	3,540
Accounts Receivable	32,090
Prepaid Insurance	5,980
Supplies	1,630
Land	94,370
Building	170,210
Accumulated Depreciation—Building			115,310
Equipment	113,400
Accumulated Depreciation—Equipment			82,130
Accounts Payable			10,060
Unearned Rent			5,710
Common Stock			80,000
Retained Earnings			104,900
Dividends	12,510
Fees Earned			271,950
Salaries and Wages Expense	162,080
Utilities Expense	35,630
Advertising Expense	19,040
Repairs Expense	14,410
Miscellaneous Expense	5,170
The data needed to determine year-end adjustments are as follows: Unexpired insurance at August 31, $4,010. Supplies on hand at August 31, $490. Depreciation of building for the year, $2,650. Depreciation of equipment for the year, $2,300. Rent unearned at August 31, $1,480. Accrued salaries and wages at August 31, $2,590. Fees earned but unbilled on August 31, $15,230. 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.	670,060		670,060

Answer 1

General Journal
Date	Description	Debit	Credit
31-Aug	Insurance expense	$             1,670
	Prepaid Insurance		$           1,670
	(to record insurance expense)
31-Aug	Supplies expense	$             1,140
	Supplies		$           1,140
	(to record supply expense)
31-Aug	Depreciation expense-Building	$             2,650
	Accumulated depreciation-Building		$           2,650
	(To record depreciation on office equipment)
31-Aug	Depreciation expense-Equipment	$             2,300
	Accumulated depreciation-Equipment		$           2,300
	(To record depreciation on office equipment)
31-Aug	Unearned rent revenue	$             4,230
	Rent revenue		$           4,230
	(To record portion of advance rent earned)
31-Aug	Salaries and wages expense	$             2,590
	Salary and wages payable		$           2,590
	(To record accrues salaries at year end.)
31-Aug	Accounts receivables	$    15,230.00
	Fee earned		$   15,230.00
	(fee earned)