Question

Adjusting Entries and Adjusted Trial Balances

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	3,460
Accounts Receivable	31,430
Prepaid Insurance	5,860
Supplies	1,600
Land	92,420
Building	246,710
Accumulated Depreciation—Building			112,930
Equipment	111,060
Accumulated Depreciation—Equipment			80,430
Accounts Payable			9,850
Unearned Rent			5,590
Jan Pitman, Capital			261,100
Jan Pitman, Drawing	12,250
Fees Earned			266,340
Salaries and Wages Expense	158,740
Utilities Expense	34,890
Advertising Expense	18,640
Repairs Expense	14,120
Miscellaneous Expense	5,060
	736,240		736,240

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

Required:

Unexpired insurance at October 31, $3,930.

Supplies on hand at October 31, $480.

Depreciation of building for the year, $2,600.

Depreciation of equipment for the year, $2,250.

Unearned rent at October 31, $1,450.

Accrued salaries and wages at October 31, $2,540.

Fees earned but unbilled on October 31, $14,920.

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.

a.	Insurance Expense
	Prepaid Insurance
b.	Supplies Expense
	Supplies
c.	Depreciation Expense-Building
	Accumulated Depreciation-Building
d.	Depreciation Expense-Equipment
	Accumulated Depreciation-Equipment
e.	Unearned Rent
	Rent Revenue
f.	Salaries and Wages Expense
	Salaries and Wages Payable
g.	Accounts Receivable
	Fees Earned

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2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank.

Pitman Company
Adjusted Trial Balance
October 31, 2019
	Debit Balances	Credit Balances
Cash
Accounts Receivable
Prepaid Insurance
Supplies
Land
Building
Accumulated Depreciation-Building
Equipment
Accumulated Depreciation-Equipment
Accounts Payable
Unearned Rent
Salaries and Wages Payable
Jan Pitman, Capital
Jan Pitman, Drawing
Fees Earned
Rent Revenue
Salaries and Wages Expense
Utilities Expense
Advertising Expense
Repairs Expense
Depreciation Expense-Building
Depreciation Expense-Equipment
Insurance Expense
Supplies Expense
Miscellaneous Expense
Totals

Answer 1