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 7,135.00 2 Accounts Receivable 37,950.00 3 Prepaid Insurance 7,045.00 4 Supplies 1,895.00 5 Land 116,150.00 6 Building 148,750.00 7 Accumulated Depreciation-Building 88,280.00 8 Equipment 133,800.00 9 Accumulated Depreciation-Equipment 97,280.00 10 Accounts Payable 12,145.00 11 Unearned Rent 6,970.00 12 Common Stock 74,735.00 13 Retained Earnings 147,950.00 14 Dividends 15,300.00 15 Fees Earned 320,650.00 16 Salaries and Wages Expense 190,770.00 17 Utilities Expense 42,730.00 18 Advertising Expense 22,595.00 19 Repairs Expense 17,420.00 20 Miscellaneous Expense 6,470.00 21 Totals 748,010.00 748,010.00 The data needed to determine year-end adjustments are as follows: a. Unexpired insurance at January 31, $6,080. b. Supplies on hand at January 31, $470. c. Depreciation of building for the year, $7,245. d. Depreciation of equipment for the year, $4,140. e. Rent unearned at January 31, $1,200. f. Accrued salaries and wages at January 31, $3,550. g. Fees earned but unbilled on January 31, $11,125. 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 affecte

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	7,135.00
2	Accounts Receivable	37,950.00
3	Prepaid Insurance	7,045.00
4	Supplies	1,895.00
5	Land	116,150.00
6	Building	148,750.00
7	Accumulated Depreciation-Building		88,280.00
8	Equipment	133,800.00
9	Accumulated Depreciation-Equipment		97,280.00
10	Accounts Payable		12,145.00
11	Unearned Rent		6,970.00
12	Common Stock		74,735.00
13	Retained Earnings		147,950.00
14	Dividends	15,300.00
15	Fees Earned		320,650.00
16	Salaries and Wages Expense	190,770.00
17	Utilities Expense	42,730.00
18	Advertising Expense	22,595.00
19	Repairs Expense	17,420.00
20	Miscellaneous Expense	6,470.00
21	Totals	748,010.00	748,010.00

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

a.	Unexpired insurance at January 31, $6,080.
b.	Supplies on hand at January 31, $470.
c.	Depreciation of building for the year, $7,245.
d.	Depreciation of equipment for the year, $4,140.
e.	Rent unearned at January 31, $1,200.
f.	Accrued salaries and wages at January 31, $3,550.
g.	Fees earned but unbilled on January 31, $11,125.

	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.

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