Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. Reece Financial Services Co.’s accounting clerk prepared the unadjusted trial balance at July 31, 2014, shown below.

The data needed to determine year-end adjustments are as follows:
a. Depreciation of building for the year, $6,400.
b. Depreciation of equipment for the year, $2,800.
c. Accrued salaries and wages at July 31, $900.
d. Unexpired insurance at July 31, $1,500.
e. Fees earned but unbilled on July 31, $10,200.
f. Supplies on hand at July 31, $615.
g. Rent unearned at July 31, $300.

Instructions
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.
2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trialbalance.

Transcribed Image Text:

Reec e Financial Services Co. Unadjusted Trial Balance July 31, 2014 Credit Balances Balances Cash 10,200 5 Land 50,000 62,850 ...45,000 Accumulated Depreciation-Equipment... . 17,650 3,750 3,600 60,000 93,550 Unearned Rent Dividends . . 8,000 158,600 1 6,100 . . 4025 400,000 Miscellaneous Expense 400,000