Emerson Company is a small editorial services company owned and operated by Suzanne Emerson. On October 31, 20Y6, Emerson Company’s accounting clerk prepared the unadjusted trial balance shown below.

The data needed to determine year-end adjustments are as follows:
• Unexpired insurance at October 31, $550.
• Supplies on hand at October 31, $610.
• Depreciation of building for the year, $10,920.
• Depreciation of equipment for the year, $7,830.
• Unearned rent at October 31, $2,050.
• Accrued salaries and wages at October 31, $2,550.
• Fees earned but unbilled on October 31, $9,140.

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 trial balance.

Transcribed Image Text:

Emerson Company Unadjusted Trial Balance October 31, 20Y6 Debit Credit Balances Balances Cash. 6,820 34,940 6,550 1,800 Accounts Receivable.... Prepaid Insurance. Supplies. Land.... 102,400 273,200 Building.. Accumulated Depreciation-Building... Equipment... Accumulated Depreciation-Equipment. Accounts Payable.. 79,660 123,110 89,130 11,060 Unearned Rent.. 6,140 338,000 Suzanne Emerson, Capital. Suzanne Emerson, Drawing. 14,000 Fees Earned.. 295,320 Salaries and Wages Expense.. Utilities Expense,. 175,950 38,560 Advertising Expense. Repairs Expense.. Miscellaneous Expense. 20,750 15,700 5,530 819,310 819,310