PR 3-1A Adjusting entries ObJ. 2

On March 31, 2016, the following data were accumulated to assist the accountant in preparing the adjusting entries for Potomac Realty:

1. The supplies account balance on March 31 is $5,620 The supplies on hand on March 31 are $1,290.
2. The unearned rent account balance on March 31 is $5,000 representing the receipt of an advance payment on March 1 of four months rent from tenants.
3. Wages accrued but not paid at March 31 are $2,290.
4. Fees accrued but unbilled at March 31 are $16,825.
5. Depreciation of office equipment is $4,600.

Instructions

1. Journalize the adjusting entries required at March 31, 2016.

PR 3-2A Adjusting entries ObJ. 2, 3

Selected account balances before adjustment for Alantic Coast Realty at July 31, 2016, the end of the current year, are as follows:

	Debits	Credits
Accounts Receivable	$75,000
Equipment	345,700
Accumulated DepreciationEquipment		$112,500
Prepaid Rent	9,000
Supplies	3,350
Wages Payable		-
Unearned Fees		12,000
Fees Earned		660,000
Wages Expense	325,000
Rent Expense	-
Depreciation Expense	-
Supplies Expense	-

Data needed for year-end adjustments are as follows:

a. Unbilled fees at July 31, $11,150.

b. Supplies on hand at July 31, $900.

c. Rent expired, $6,000.

d. Depreciation of equipment during year, $8,950.

e. Unearned fees at July 31, $2,000.

f. Wages accrued but not paid at July 31, $4,840.

Instructions

1. Journalize the six adjusting entries required at July 31, based on the data presented.

2. What would be the effect on the income statement if adjustments (a) and (f) were omitted at the end of the year?

PR 3-5A Adjusting entries and adjusted trial balances ObJ. 2, 3, 4

Rowland Company is a small editorial services company owned and operated by Marlene Rowland. On August 31, 2016, the end of the current year, Rowland Companys account- ing clerk prepared the following unadjusted trial balance:

Rowland Company	Intentionally left blank	Intentionally left blank
Unadjusted Trial Balance	Intentionally left blank	Intentionally left blank
August 31, 2016	Intentionally left blank	Intentionally left blank
	Debits	Credits
Cash	7,500
Accounts Receivable	38,400
Prepaid Insurance	7,200
Supplies	1,980
Land	112,500
Building	150,250
Accumulated Depreciation Building		87,550
Equipment	135,300
Accumulated Depreciation Equipment		97,950
Accounts Payable		12,150
Unearned Rent		6,750
Marlene Rowland, Capital		221,000
Marlene Rowland, Drawing	15,000
Fees Earned		324,600
Salaries and Wages Epense	193,370
Utilities Expense	42,375
Advertising Expense	22,800
Repairs Expense	17,250
Miscellaneous Expense	6,075
Total	750,000	750,000

The data needed to determine year-end adjustments are as follows:

a. Unexpired insurance at August 31, $6,000.

b. Supplies on hand at August 31, $480.

c. Depreciation of building for the year, $7,500.

d. Depreciation of equipment for the year, $4,150.

e. Rent unearned at August 31, $1,550.

f. Accrued salaries and wages at August 31, $3,200.

g. Fees earned but unbilled on August 31, $11,330.

Instructions

1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation ExpenseBuilding; Depreciation ExpenseEquipment; and Supplies Expense.

2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance.