Galloway Company is a small editorial services company owned and operated by Fran Briggs. On July 31, 2012, the end of the current year, Galloway Company€™s accounting clerk prepared the unadjusted trial balance shown on below.
The data needed to determine year-end adjustments are as follows:
a. Unexpired insurance at July 31, $4,800.
b. Supplies on hand at July 31, $600.
c. Depreciation of building for the year, $3,100.
d. Depreciation of equipment for the year, $2,700.
e. Rent unearned at July 31, $1,750.
f. Accrued salaries and wages at July 31, $3,000.
g. Fees earned but unbilled on July 31, $10,750.

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:

Galloway Company Unadjusted Trial Balance July 31, 2012 Debit Balances Credit Balances Cash ..7,500 Prepaid insurance Supplie.. Land Building_.. Accumulated Depreciation-Building ...112,500 137,550 135,300 Accumulated Depreciation-Equipment Accounts Payable 97,950 12,150 6,750 221,000 Fran Briggs, Drawing Fees Earned 324,600 2 Utilities Expense 42,375 22,800 17,250 Miscellaneous Expense.. 800,000 800,000