Homework SoursePitman Company is a small editorial services company owned a
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
1
Cash
7,500.00
2
Accounts Receivable
38,400.00
3
Prepaid Insurance
7,200.00
4
Supplies
1,980.00
5
Land
112,500.00
6
Building
300,250.00
7
Accumulated Depreciation-Building
87,550.00
8
Equipment
135,300.00
9
Accumulated Depreciation-Equipment
97,950.00
10
Accounts Payable
12,150.00
11
Unearned Rent
6,750.00
12
Jan Pitman, Capital
371,000.00
13
Jan Pitman, Drawing
15,000.00
14
Fees Earned
324,600.00
15
Salaries and Wages Expense
193,370.00
16
Utilities Expense
42,375.00
17
Advertising Expense
22,800.00
18
Repairs Expense
17,250.00
19
Miscellaneous Expense
6,075.00
20
Totals
900,000.00
900,000.00
The data needed to determine year-end adjustments are as follows:
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.
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PAGE 10
JOURNAL
ACCOUNTING EQUATION
Score: 158/176
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Adjusting Entries
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| ACCOUNT TITLE | DEBIT | CREDIT | |
|---|---|---|---|
| 1 | Cash | 7,500.00 | |
| 2 | Accounts Receivable | 38,400.00 | |
| 3 | Prepaid Insurance | 7,200.00 | |
| 4 | Supplies | 1,980.00 | |
| 5 | Land | 112,500.00 | |
| 6 | Building | 300,250.00 | |
| 7 | Accumulated Depreciation-Building | 87,550.00 | |
| 8 | Equipment | 135,300.00 | |
| 9 | Accumulated Depreciation-Equipment | 97,950.00 | |
| 10 | Accounts Payable | 12,150.00 | |
| 11 | Unearned Rent | 6,750.00 | |
| 12 | Jan Pitman, Capital | 371,000.00 | |
| 13 | Jan Pitman, Drawing | 15,000.00 | |
| 14 | Fees Earned | 324,600.00 | |
| 15 | Salaries and Wages Expense | 193,370.00 | |
| 16 | Utilities Expense | 42,375.00 | |
| 17 | Advertising Expense | 22,800.00 | |
| 18 | Repairs Expense | 17,250.00 | |
| 19 | Miscellaneous Expense | 6,075.00 | |
| 20 | Totals | 900,000.00 | 900,000.00 |
Solution
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| Transaction | Account Description | Debit | Credit |
| a | Insurance Expense | 6,600.00 | |
| Prepaid Insurance | |||
| (Being Prepaid Insurance amottized) | |||
| b | Supplies Expense | 1,305.00 | |
| Supplies | 1,305.00 | ||
| (Being Supplies Consumed Recorded) | |||
| c | Depreciation Expense—Building | 12,000.00 | |
| Accumulated depreciation | 12,000.00 | ||
| (Being Depreciation on Building Recorded) | |||
| d | Depreciation Expense—Equipment | 8,600.00 | |
| Accumulated depreciation | 8,600.00 | ||
| (Being Depreciation on equipment Recorded) | |||
| e | Unearned Rent | 4,500.00 | |
| Rent Revenue | 4,500.00 | ||
| (Being Rent Revenue Recorded) | |||
| f | Salaries and Wages Expense | 2,800.00 | |
| Salaries and Wages Payable | 2,800.00 | ||
| (Being Expenses Accrued) | |||
| g | Accounts Receivable | 10,050.00 | |
| Fees Earned | 10,050.00 | ||
| (Being Revenue Earned Recorded) |
