Dickens Company
Unadjusted Trial Balance
October 31, 2014
Debit
Balances
Credit
Balances
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
Monica Baker, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221,000
Monica Baker, Drawing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000
Fees Earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324,600
Salaries and Wages Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193,370
Utilities Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,375
Advertising Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,800
Repairs Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,250
Miscellaneous Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,075
750,000 750,000
The data needed to determine year-end adjustments are as follows:
a. Unexpired insurance at October 31, $5,400.
b. Supplies on hand at October 31, $375.
c. Depreciation of building for the year, $6,000.
d. Depreciation of equipment for the year, $3,000.
e. Rent unearned at October 31, $1,350.
f. Accrued salaries and wages at October 31, $2,900.
g. Fees earned but unbilled on October 31, $18,600.
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.
Answer:
1. a. Insurance Expense 1,800
Prepaid Insurance 1,800
Insurance expired ($7,200 – $5,400).
b.
Supplies Expense 1,605
Supplies 1,605
Supplies used ($1,980 – $375).
c.
Depreciation Expense—Building 6,000
Accumulated Depreciation—Building 6,000
Building depreciation.
d.
Depreciation Expense—Equipment 3,000
Accumulated Depreciation—Equipment 3,000
Equipment depreciation.
e.
Unearned Rent 5,400
Rent Revenue 5,400
Rent revenue earned ($6,750 – $1,350).
f.
Salaries and Wages Expense 2,900
Salaries and Wages Payable 2,900
Accrued salaries and wages.
g.
Accounts Receivable 18,600
Fees Earned 18,600
Accrued fees earned
2.
DICKENS COMPANY
Adjusted Trial Balance
October 31, 2014
Debit
Balances
Credit
Balances
Cash 7,500
Accounts Receivable 57,000
Prepaid Insurance 5,400
Supplies 375
Land 112,500
Building 150,250
Accumulated Depreciation—Building 93,550
Equipment 135,300
Accumulated Depreciation—Equipment 100,950
Accounts Payable 12,150
Unearned Rent 1,350
Salaries and Wages Payable 2,900
Monica Baker, Capital 221,000
Monica Baker, Drawing 15,000
Fees Earned 343,200
Rent Revenue 5,400
Salaries and Wages Expense 196,270
Utilities Expense 42,375
Advertising Expense 22,800
Repairs Expense 17,250
Depreciation Expense—Building 6,000
Depreciation Expense—Equipment 3,000
Insurance Expense 1,800
Supplies Expense 1,605
Miscellaneous Expense 6,075
780,500 780,500