| 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. Refer to the Chart of Accounts for exact wording of account titles. |
| 2. | Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance. |
Sears Editing Company is a small editorial services company owned and operated by Deloris Sears. On January 31, 20Y1, the end of the current year, Sears Editing Company’s accounting clerk prepared the following unadjusted trial balance:
Sears Editing Company
UNADJUSTED TRIAL BALANCE
January 31, 20Y1
| ACCOUNT TITLE | DEBIT | CREDIT | |
|---|---|---|---|
|
1 |
Cash |
7,565.00 |
|
|
2 |
Accounts Receivable |
38,860.00 |
|
|
3 |
Prepaid Insurance |
7,310.00 |
|
|
4 |
Supplies |
2,435.00 |
|
|
5 |
Land |
117,450.00 |
|
|
6 |
Building |
153,100.00 |
|
|
7 |
Accumulated Depreciation-Building |
87,230.00 |
|
|
8 |
Equipment |
137,150.00 |
|
|
9 |
Accumulated Depreciation-Equipment |
99,160.00 |
|
|
10 |
Accounts Payable |
12,005.00 |
|
|
11 |
Unearned Rent |
6,425.00 |
|
|
12 |
Common Stock |
74,720.00 |
|
|
13 |
Retained Earnings |
156,765.00 |
|
|
14 |
Dividends |
14,500.00 |
|
|
15 |
Fees Earned |
327,050.00 |
|
|
16 |
Salaries and Wages Expense |
196,570.00 |
|
|
17 |
Utilities Expense |
42,485.00 |
|
|
18 |
Advertising Expense |
22,730.00 |
|
|
19 |
Repairs Expense |
17,280.00 |
|
|
20 |
Miscellaneous Expense |
5,920.00 |
|
|
21 |
Totals |
763,355.00 |
763,355.00 |
The data needed to determine year-end adjustments are as follows:
| a. | Unexpired insurance at January 31, $5,985. |
| b. | Supplies on hand at January 31, $470. |
| c. | Depreciation of building for the year, $7,900. |
| d. | Depreciation of equipment for the year, $4,590. |
| e. | Rent unearned at January 31, $1,560. |
| f. | Accrued salaries and wages at January 31, $3,085. |
| g. | Fees earned but unbilled on January 31, $11,010. |
In: Accounting
The condensed financial statements of Murawski Company for the
years 2014 and 2015 are presented below.
|
MURAWSKI COMPANY |
||||||
|
2015 |
2014 |
|||||
| Current assets | ||||||
| Cash and cash equivalents | $ 364 | $ 367 | ||||
| Accounts receivable (net) | 387 | 466 | ||||
| Inventory | 373 | 446 | ||||
| Prepaid expenses | 140 | 131 | ||||
| Total current assets | 1,264 | 1,410 | ||||
| Property, plant, and equipment | 363 | 434 | ||||
| Investments | 11 | 11 | ||||
| Intangibles and other assets | 530 | 545 | ||||
| Total assets | $2,168 | $2,400 | ||||
| Current liabilities | $ 801 | $ 881 | ||||
| Long-term liabilities | 355 | 406 | ||||
| Stockholders’ equity—common | 1,012 | 1,113 | ||||
| Total liabilities and stockholders’ equity | $2,168 | $2,400 | ||||
|
MURAWSKI COMPANY |
||||||
|
2015 |
2014 |
|||||
| Sales revenue | $3,921 | $3,800 | ||||
| Costs and expenses | ||||||
| Cost of goods sold | 887 | 969 | ||||
| Selling & administrative expenses | 2,319 | 2,384 | ||||
| Interest expense | 25 | 22 | ||||
| Total costs and expenses | 3,231 | 3,375 | ||||
| Income before income taxes | 690 | 425 | ||||
| Income tax expense | 139 | 145 | ||||
| Net income | $ 551 | $ 280 | ||||
Compute the following ratios for 2015 and 2014. (Round
answers to 1 decimal place, e.g. 1.6 or 1.6%.)
| (a) | Current ratio. | |
| (b) | Inventory turnover. (Inventory on 12/31/13 was $335.) | |
| (c) | Profit margin. | |
| (d) | Return on assets. (Assets on 12/31/13 were $1,900.) | |
| (e) | Return on common stockholders’ equity. (Equity on 12/31/13 was $903.) | |
| (f) | Debt to assets ratio. | |
| (g) | Times interest earned. |
|
2015 |
2014 |
|||||
| Current ratio | :1 | :1 | ||||
| Inventory turnover | times | times | ||||
| Profit margin ratio | % | % | ||||
| Return on assets | % | % | ||||
| Return on common stockholders’ equity | % | % | ||||
| Debt to assets ratio | % | % | ||||
| Times interest earned | times | times | ||||
In: Accounting
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
| ACCOUNT TITLE | DEBIT | CREDIT | |
|---|---|---|---|
|
1 |
Cash |
7,420.00 |
|
|
2 |
Accounts Receivable |
38,115.00 |
|
|
3 |
Prepaid Insurance |
7,050.00 |
|
|
4 |
Supplies |
1,630.00 |
|
|
5 |
Land |
114,550.00 |
|
|
6 |
Building |
150,250.00 |
|
|
7 |
Accumulated Depreciation-Building |
88,800.00 |
|
|
8 |
Equipment |
133,200.00 |
|
|
9 |
Accumulated Depreciation-Equipment |
96,605.00 |
|
|
10 |
Accounts Payable |
12,560.00 |
|
|
11 |
Unearned Rent |
7,035.00 |
|
|
12 |
Jan Pitman, Capital |
217,215.00 |
|
|
13 |
Jan Pitman, Drawing |
15,055.00 |
|
|
14 |
Fees Earned |
327,900.00 |
|
|
15 |
Salaries and Wages Expense |
194,870.00 |
|
|
16 |
Utilities Expense |
42,345.00 |
|
|
17 |
Advertising Expense |
22,335.00 |
|
|
18 |
Repairs Expense |
17,690.00 |
|
|
19 |
Miscellaneous Expense |
5,605.00 |
|
|
20 |
Totals |
750,115.00 |
750,115.00 |
The data needed to determine year-end adjustments are as follows:
| a. | Unexpired insurance at October 31, $6,130. |
| b. | Supplies on hand at October 31, $615. |
| c. | Depreciation of building for the year, $7,610. |
| d. | Depreciation of equipment for the year, $4,300. |
| e. | Unearned rent at October 31, $1,490. |
| f. | Accrued salaries and wages at October 31, $3,040. |
| g. | Fees earned but unbilled on October 31, $10,865. |
| 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. Refer to the Chart of Accounts for exact wording of account titles. |
| 2. | Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance. |
In: Accounting
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 ACCOUNT TITLE DEBIT CREDIT 1 Cash 7,710.00 2 Accounts Receivable 37,935.00 3 Prepaid Insurance 7,070.00 4 Supplies 2,125.00 5 Land 108,400.00 6 Building 145,300.00 7 Accumulated Depreciation-Building 85,610.00 8 Equipment 134,800.00 9 Accumulated Depreciation-Equipment 96,100.00 10 Accounts Payable 12,625.00 11 Unearned Rent 6,340.00 12 Jan Pitman, Capital 219,690.00 13 Jan Pitman, Drawing 15,120.00 14 Fees Earned 323,700.00 15 Salaries and Wages Expense 196,770.00 16 Utilities Expense 42,265.00 17 Advertising Expense 23,135.00 18 Repairs Expense 17,195.00 19 Miscellaneous Expense 6,240.00 20 Totals 744,065.00 744,065.00 The data needed to determine year-end adjustments are as follows: a. Unexpired insurance at October 31, $6,105. b. Supplies on hand at October 31, $485. c. Depreciation of building for the year, $7,140. d. Depreciation of equipment for the year, $4,445. e. Unearned rent at October 31, $1,890. f. Accrued salaries and wages at October 31, $3,330. g. Fees earned but unbilled on October 31, $11,475. 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. Refer to the Chart of Accounts for exact wording of account titles. 2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance.
In: Accounting
Sears Editing Company is a small editorial services company owned and operated by Deloris Sears. On January 31, 20Y1, the end of the current year, Sears Editing Company’s accounting clerk prepared the following unadjusted trial balance:
Sears Editing Company
UNADJUSTED TRIAL BALANCE
January 31, 20Y1
| ACCOUNT TITLE | DEBIT | CREDIT | |
|---|---|---|---|
|
1 |
Cash |
7,420.00 |
|
|
2 |
Accounts Receivable |
38,115.00 |
|
|
3 |
Prepaid Insurance |
7,050.00 |
|
|
4 |
Supplies |
1,630.00 |
|
|
5 |
Land |
114,550.00 |
|
|
6 |
Building |
150,250.00 |
|
|
7 |
Accumulated Depreciation-Building |
88,800.00 |
|
|
8 |
Equipment |
133,200.00 |
|
|
9 |
Accumulated Depreciation-Equipment |
96,605.00 |
|
|
10 |
Accounts Payable |
12,560.00 |
|
|
11 |
Unearned Rent |
7,035.00 |
|
|
12 |
Common Stock |
74,980.00 |
|
|
13 |
Retained Earnings |
142,235.00 |
|
|
14 |
Dividends |
15,055.00 |
|
|
15 |
Fees Earned |
327,900.00 |
|
|
16 |
Salaries and Wages Expense |
194,870.00 |
|
|
17 |
Utilities Expense |
42,345.00 |
|
|
18 |
Advertising Expense |
22,335.00 |
|
|
19 |
Repairs Expense |
17,690.00 |
|
|
20 |
Miscellaneous Expense |
5,605.00 |
|
|
21 |
Totals |
750,115.00 |
750,115.00 |
The data needed to determine year-end adjustments are as follows:
| a. | Unexpired insurance at January 31, $6,130. |
| b. | Supplies on hand at January 31, $615. |
| c. | Depreciation of building for the year, $7,610. |
| d. | Depreciation of equipment for the year, $4,300. |
| e. | Rent unearned at January 31, $1,490. |
| f. | Accrued salaries and wages at January 31, $3,040. |
| g. | Fees earned but unbilled on January 31, $10,865. |
| 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. Refer to the Chart of Accounts for exact wording of account titles. |
| 2. | Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance. |
In: Accounting
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
| ACCOUNT TITLE | DEBIT | CREDIT | |
|---|---|---|---|
|
1 |
Cash |
7,420.00 |
|
|
2 |
Accounts Receivable |
38,360.00 |
|
|
3 |
Prepaid Insurance |
7,320.00 |
|
|
4 |
Supplies |
2,390.00 |
|
|
5 |
Land |
117,000.00 |
|
|
6 |
Building |
154,900.00 |
|
|
7 |
Accumulated Depreciation-Building |
85,745.00 |
|
|
8 |
Equipment |
130,900.00 |
|
|
9 |
Accumulated Depreciation-Equipment |
97,550.00 |
|
|
10 |
Accounts Payable |
11,735.00 |
|
|
11 |
Unearned Rent |
7,130.00 |
|
|
12 |
Jan Pitman, Capital |
227,645.00 |
|
|
13 |
Jan Pitman, Drawing |
14,705.00 |
|
|
14 |
Fees Earned |
325,550.00 |
|
|
15 |
Salaries and Wages Expense |
193,870.00 |
|
|
16 |
Utilities Expense |
42,220.00 |
|
|
17 |
Advertising Expense |
22,740.00 |
|
|
18 |
Repairs Expense |
17,455.00 |
|
|
19 |
Miscellaneous Expense |
6,075.00 |
|
|
20 |
Totals |
755,355.00 |
755,355.00 |
The data needed to determine year-end adjustments are as follows:
| a. | Unexpired insurance at October 31, $5,850. |
| b. | Supplies on hand at October 31, $310. |
| c. | Depreciation of building for the year, $7,750. |
| d. | Depreciation of equipment for the year, $4,220. |
| e. | Unearned rent at October 31, $1,495. |
| f. | Accrued salaries and wages at October 31, $3,040. |
| g. | Fees earned but unbilled on October 31, $11,185. |
| 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. Refer to the Chart of Accounts for exact wording of account titles. |
| 2. | Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance. |
In: Accounting
Rowland Company is a small editorial services company owned and operated by Marlene Rowland. 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
| ACCOUNT TITLE | DEBIT | CREDIT | |
|---|---|---|---|
|
1 |
Cash |
7,565.00 |
|
|
2 |
Accounts Receivable |
38,860.00 |
|
|
3 |
Prepaid Insurance |
7,310.00 |
|
|
4 |
Supplies |
2,435.00 |
|
|
5 |
Land |
117,450.00 |
|
|
6 |
Building |
153,100.00 |
|
|
7 |
Accumulated Depreciation-Building |
87,230.00 |
|
|
8 |
Equipment |
137,150.00 |
|
|
9 |
Accumulated Depreciation-Equipment |
99,160.00 |
|
|
10 |
Accounts Payable |
12,005.00 |
|
|
11 |
Unearned Rent |
6,425.00 |
|
|
12 |
Common Stock |
74,720.00 |
|
|
13 |
Retained Earnings |
156,765.00 |
|
|
14 |
Dividends |
14,500.00 |
|
|
15 |
Fees Earned |
327,050.00 |
|
|
16 |
Salaries and Wages Expense |
196,570.00 |
|
|
17 |
Utilities Expense |
42,485.00 |
|
|
18 |
Advertising Expense |
22,730.00 |
|
|
19 |
Repairs Expense |
17,280.00 |
|
|
20 |
Miscellaneous Expense |
5,920.00 |
|
|
21 |
Totals |
763,355.00 |
763,355.00 |
The data needed to determine year-end adjustments are as follows:
| a. | Unexpired insurance at August 31, $5,985. |
| b. | Supplies on hand at August 31, $470. |
| c. | Depreciation of building for the year, $7,900. |
| d. | Depreciation of equipment for the year, $4,590. |
| e. | Rent unearned at August 31, $1,560. |
| f. | Accrued salaries and wages at August 31, $3,085. |
| g. | Fees earned but unbilled on August 31, $11,010. |
| 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. Refer to the Chart of Accounts for exact wording of account titles. |
| 2. | Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance. |
In: Accounting
Rowland Company is a small editorial services company owned and operated by Marlene Rowland. 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
| ACCOUNT TITLE | DEBIT | CREDIT | |
|---|---|---|---|
|
1 |
Cash |
7,755.00 |
|
|
2 |
Accounts Receivable |
38,655.00 |
|
|
3 |
Prepaid Insurance |
7,380.00 |
|
|
4 |
Supplies |
2,065.00 |
|
|
5 |
Land |
111,050.00 |
|
|
6 |
Building |
153,300.00 |
|
|
7 |
Accumulated Depreciation-Building |
86,065.00 |
|
|
8 |
Equipment |
140,000.00 |
|
|
9 |
Accumulated Depreciation-Equipment |
97,335.00 |
|
|
10 |
Accounts Payable |
12,090.00 |
|
|
11 |
Unearned Rent |
6,385.00 |
|
|
12 |
Common Stock |
75,410.00 |
|
|
13 |
Retained Earnings |
155,595.00 |
|
|
14 |
Dividends |
14,910.00 |
|
|
15 |
Fees Earned |
327,650.00 |
|
|
16 |
Salaries and Wages Expense |
197,220.00 |
|
|
17 |
Utilities Expense |
42,205.00 |
|
|
18 |
Advertising Expense |
22,795.00 |
|
|
19 |
Repairs Expense |
16,910.00 |
|
|
20 |
Miscellaneous Expense |
6,285.00 |
|
|
21 |
Totals |
760,530.00 |
760,530.00 |
The data needed to determine year-end adjustments are as follows:
| a. | Unexpired insurance at August 31, $6,015. |
| b. | Supplies on hand at August 31, $400. |
| c. | Depreciation of building for the year, $7,740. |
| d. | Depreciation of equipment for the year, $3,835. |
| e. | Rent unearned at August 31, $1,625. |
| f. | Accrued salaries and wages at August 31, $2,720. |
| g. | Fees earned but unbilled on August 31, $11,520. |
| 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. Refer to the Chart of Accounts for exact wording of account titles. |
| 2. | Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance. |
In: Accounting
Rowland Company is a small editorial services company owned and operated by Marlene Rowland. 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
| ACCOUNT TITLE | DEBIT | CREDIT | |
|---|---|---|---|
|
1 |
Cash |
7,655.00 |
|
|
2 |
Accounts Receivable |
38,345.00 |
|
|
3 |
Prepaid Insurance |
7,075.00 |
|
|
4 |
Supplies |
2,290.00 |
|
|
5 |
Land |
113,500.00 |
|
|
6 |
Building |
149,450.00 |
|
|
7 |
Accumulated Depreciation-Building |
87,905.00 |
|
|
8 |
Equipment |
133,250.00 |
|
|
9 |
Accumulated Depreciation-Equipment |
96,435.00 |
|
|
10 |
Accounts Payable |
11,860.00 |
|
|
11 |
Unearned Rent |
6,705.00 |
|
|
12 |
Common Stock |
74,530.00 |
|
|
13 |
Retained Earnings |
146,290.00 |
|
|
14 |
Dividends |
14,690.00 |
|
|
15 |
Fees Earned |
328,600.00 |
|
|
16 |
Salaries and Wages Expense |
198,220.00 |
|
|
17 |
Utilities Expense |
42,120.00 |
|
|
18 |
Advertising Expense |
22,315.00 |
|
|
19 |
Repairs Expense |
17,210.00 |
|
|
20 |
Miscellaneous Expense |
6,205.00 |
|
|
21 |
Totals |
752,325.00 |
752,325.00 |
The data needed to determine year-end adjustments are as follows:
| a. | Unexpired insurance at August 31, $5,860. |
| b. | Supplies on hand at August 31, $545. |
| c. | Depreciation of building for the year, $7,985. |
| d. | Depreciation of equipment for the year, $4,080. |
| e. | Rent unearned at August 31, $1,145. |
| f. | Accrued salaries and wages at August 31, $3,490. |
| g. | Fees earned but unbilled on August 31, $11,640. |
| 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. Refer to the Chart of Accounts for exact wording of account titles. |
| 2. | Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance. |
In: Accounting
Rowland Company is a small editorial services company owned and operated by Marlene Rowland. 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
| ACCOUNT TITLE | DEBIT | CREDIT | |
|---|---|---|---|
|
1 |
Cash |
7,420.00 |
|
|
2 |
Accounts Receivable |
38,360.00 |
|
|
3 |
Prepaid Insurance |
7,320.00 |
|
|
4 |
Supplies |
2,390.00 |
|
|
5 |
Land |
117,000.00 |
|
|
6 |
Building |
154,900.00 |
|
|
7 |
Accumulated Depreciation-Building |
85,745.00 |
|
|
8 |
Equipment |
130,900.00 |
|
|
9 |
Accumulated Depreciation-Equipment |
97,550.00 |
|
|
10 |
Accounts Payable |
11,735.00 |
|
|
11 |
Unearned Rent |
7,130.00 |
|
|
12 |
Common Stock |
74,895.00 |
|
|
13 |
Retained Earnings |
152,750.00 |
|
|
14 |
Dividends |
14,705.00 |
|
|
15 |
Fees Earned |
325,550.00 |
|
|
16 |
Salaries and Wages Expense |
193,870.00 |
|
|
17 |
Utilities Expense |
42,220.00 |
|
|
18 |
Advertising Expense |
22,740.00 |
|
|
19 |
Repairs Expense |
17,455.00 |
|
|
20 |
Miscellaneous Expense |
6,075.00 |
|
|
21 |
Totals |
755,355.00 |
755,355.00 |
The data needed to determine year-end adjustments are as follows:
| a. | Unexpired insurance at August 31, $5,850. |
| b. | Supplies on hand at August 31, $310. |
| c. | Depreciation of building for the year, $7,750. |
| d. | Depreciation of equipment for the year, $4,220. |
| e. | Rent unearned at August 31, $1,495. |
| f. | Accrued salaries and wages at August 31, $3,040. |
| g. | Fees earned but unbilled on August 31, $11,185. |
| 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. Refer to the Chart of Accounts for exact wording of account titles. |
| 2. | Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance. |
In: Accounting