Dickens Company is a small editorial services company owned and operated by Monica Baker. On October 31, 2014, the end of the current year, Dickens 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, $5,400.

Supplies on hand at October 31, $375.

Depreciation of building for the year, $6,000.

Depreciation of equipment for the year, $3,000.

Rent unearned at October 31, $1,350.

Accrued salaries and wages at October 31, $2,900.

Fees earned but unbilled on October 31, $18,600.

Required:

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. If an amount box does not require an entry, leave it blank.

Transcribed Image Text:

Cash Accounts Receivable.. Prepaid Insurance. Supplies. Dickens Company Unadjusted Trial Balance October 31, 2014 Land ... Building... Accumulated Depreciation-Building.. Equipment........ Accumulated Depreciation-Equipment. Accounts Payable.. Unearned Rent.... Monica Baker, Capital. Monica Baker, Drawing Fees Earned..... Salaries and Wages Expense. Utilities Expense. Advertising Expense.. Repairs Expense.... Miscellaneous Expense. …….... Debit Balances 7,500 38,400 7,200 1,980 112,500 150,250 135,300 15,000 193,370 42,375 22,800 17,250 6,075 750,000 Credit Balances 87,550 97,950 12,150 6,750 221,000 324,600 750,000 Cash Accounts Receivable.. Prepaid Insurance. Supplies. Dickens Company Unadjusted Trial Balance October 31, 2014 Land ... Building... Accumulated Depreciation-Building.. Equipment........ Accumulated Depreciation-Equipment. Accounts Payable.. Unearned Rent.... Monica Baker, Capital. Monica Baker, Drawing Fees Earned..... Salaries and Wages Expense. Utilities Expense. Advertising Expense.. Repairs Expense.... Miscellaneous Expense. …….... Debit Balances 7,500 38,400 7,200 1,980 112,500 150,250 135,300 15,000 193,370 42,375 22,800 17,250 6,075 750,000 Credit Balances 87,550 97,950 12,150 6,750 221,000 324,600 750,000

Answer rating: 100% (QA)

Dickens Company All Amounts in 1 Adjustment Journal Entries Insurance Ac DR 5400 To Prepaid Insuranc... View the full answer