Stant Company is a small editorial services company owned and operated by Tracy Stant. On July 31,
Question:
Stant Company is a small editorial services company owned and operated by Tracy Stant. On July 31, 2012, the end of the current year, Stant Company’s accounting clerk prepared the unadjusted trial balance:
Stant Company Unadjusted Trial Balance July 31, 2018 | ||
| Debit Balances | Credit Balances |
Cash | $7,500 |
|
Accounts Receivable | 38,400 |
|
Prepaid Insurance | 7,200 |
|
Supplies | 1,980 |
|
Land | 112,500 |
|
Building | 200,250 |
|
Accumulated Depreciation – Building |
| $137,550 |
Equipment | 135,300 |
|
Accumulated Depreciation – Equipment |
| 97,950 |
Accounts Payable |
| 12,150 |
Salaries and Wages Payable |
|
|
Unearned Rent |
| 6,750 |
Tracy Stant, Capital |
| 221,000 |
Tracy Stant, Drawing | 15,000 |
|
Fees Earned |
| 324,600 |
Salaries and Wages Expense | 193,370 |
|
Utility Expense | 42,375 |
|
Insurance Expense |
|
|
Supplies Expense |
|
|
Depreciation Expense |
|
|
Advertising Expense | 22,800 |
|
Repairs Expense | 17,250 |
|
Miscellaneous Expense | 6,075 |
|
| $800,000 | $800,000 |
Journalize the following adjusting entry:
Unexpired Insurance on July 31, $3,500.
Date | Description | Debit | Credit |
July 31 |
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Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren