Pitman Company is a small editorial services company owned andoperated by Jan Pitman. On October 31, 2019 the end of the currentyear, Pitman Company’s accounting clerk prepared the followingunadjusted trial balance:
Pitman Company
UNADJUSTED TRIAL BALANCE
October 31, 2019
| ACCOUNT TITLE | DEBIT | CREDIT |
|---|
1 | Cash | 7,755.00 | |
2 | Accounts Receivable | 38,655.00 | |
3 | Prepaid Insurance | 7,380.00 | |
4 | Supplies | 2,065.00 | |
5 | Land | 111,050.00 | |
6 | Building | 153,300.00 | |
7 | Accumulated Depreciation-Building | | 86,065.00 |
8 | Equipment | 140,000.00 | |
9 | Accumulated Depreciation-Equipment | | 97,335.00 |
10 | Accounts Payable | | 12,090.00 |
11 | Unearned Rent | | 6,385.00 |
12 | Jan Pitman, Capital | | 231,005.00 |
13 | Jan Pitman, Drawing | 14,910.00 | |
14 | Fees Earned | | 327,650.00 |
15 | Salaries and Wages Expense | 197,220.00 | |
16 | Utilities Expense | 42,205.00 | |
17 | Advertising Expense | 22,795.00 | |
18 | Repairs Expense | 16,910.00 | |
19 | Miscellaneous Expense | 6,285.00 | |
20 | Totals | 760,530.00 | 760,530.00 |
The data needed to determine year-end adjustments are asfollows:
| a. | Unexpired insurance at October 31, $6,015. |
| b. | Supplies on hand at October 31, $400. |
| c. | Depreciation of building for the year, $7,740. |
| d. | Depreciation of equipment for the year, $3,835. |
| e. | Unearned rent at October 31, $1,625. |
| f. | Accrued salaries and wages at October 31, $2,720. |
| g. | Fees earned but unbilled on October 31, $11,520. |
| Required: |
| 1. | Journalize the adjusting entries using the following additionalaccounts: Salaries and Wages Payable, Rent Revenue, InsuranceExpense, Depreciation Expense—Building, DepreciationExpense—Equipment and Supplies Expense. Refer to the Chart ofAccounts for exact wording of account titles. |
| 2. | Determine the balances of the accounts affected by theadjusting entries and prepare an adjusted trial balance. |
