Cambridge Company is a small editorial services company owned and operated by Dave Maier. On December 31, 2008, the end of the current year, Cambridge Company's accounting clerk prepared the unadjusted trial balance shown at the top of the following page.
The data needed to determine year-end adjustments are as follows:
a. Unexpired insurance at December 31, $2,700.
b. Supplies on hand at December 31, $480.
c. Depreciation of building for the year, $1,600.
d. Depreciation of equipment for the year, $4,400.
e. Rent unearned at December 31, $3,250.
f. Accrued salaries and wages at December 31, $2,800.
g. Fees earned but unbilled on December 31, $6,200.

Instructions
1. Journalize the adjusting entries. Add additional accounts as needed.
2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trialbalance.

Transcribed Image Text:

Cambridge Company Unadjusted Trial Balance December 31, 2008 Debit Credit Balances Balances Cash. 5,550 1,980 Accumulated Depreciation-Building _ Equipment . 135,300 137,550 97,950 12,150 6,750 201,000 Un earned Rent .. . 294,600 Advertising Expense . . . . 22,800 6,075 750,000 750,000