Martin Editing Company is a small editorial services company owned and operated by Andrew Martin. On August 31, 20Y1, the end of the current year, Martin Editing Company’s accounting clerk prepared the following unadjusted trial balance:

The data needed to determine year-end adjustments are as follows:
• Unexpired insurance at August 31, $1,800.
• Supplies on hand at August 31, $300.
• Depreciation of building for the year, $7,500.
• Depreciation of equipment for the year, $6,000.
• Rent unearned at August 31, $2,250.
• Accrued salaries and wages at August 31, $2,175.
• Fees earned but unbilled on August 31, $12,700.

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:

Martin Editing Company Unadjusted Trial Balance August 31, 20Y1 Debit Credit Balances Balances Cash 7,500 Accounts Receivable. 38,400 Prepaid Insurance Supplies.. 7,200 1,980 112,500 150,250 Land Building .. Accumulated Depreciation-Building. 87,550 135,300 Equipment... Accumulated Depreciation-Equipment. Accounts Payable 97,950 12,150 6,750 Unearned Rent. Common Stock 75,000 146,000 Retained Earnings Dividends 15,000 Fees Earned.. 324,600 Salaries and Wages Expense.. Utilities Expense . Advertising Expense.. Repairs Expense.... Miscellaneous Expense 193,370 42,375 22,800 17,250 6,075 750,000 750,000