Pitman Company is a small editorial services company owned and operated by Jan P
ID: 2409442 • Letter: P
Question
Pitman Company is a small editorial services company owned and operated by Jan Pitman. On October 31, 2019 the end of the current year, Pitman Company’s accounting clerk prepared the following unadjusted trial balance:
Pitman Company
UNADJUSTED TRIAL BALANCE
October 31, 2019
1
Cash
7,500.00
2
Accounts Receivable
38,400.00
3
Prepaid Insurance
7,200.00
4
Supplies
1,980.00
5
Land
112,500.00
6
Building
300,250.00
7
Accumulated Depreciation-Building
87,550.00
8
Equipment
135,300.00
9
Accumulated Depreciation-Equipment
97,950.00
10
Accounts Payable
12,150.00
11
Unearned Rent
6,750.00
12
Jan Pitman, Capital
371,000.00
13
Jan Pitman, Drawing
15,000.00
14
Fees Earned
324,600.00
15
Salaries and Wages Expense
193,370.00
16
Utilities Expense
42,375.00
17
Advertising Expense
22,800.00
18
Repairs Expense
17,250.00
19
Miscellaneous Expense
6,075.00
20
Totals
900,000.00
900,000.00
The data needed to determine year-end adjustments are as follows:
CHART OF ACCOUNTSPitman CompanyGeneral Ledger
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. Refer to the Chart of Accounts for exact wording of account titles.
How does grading work?
PAGE 10
JOURNAL
ACCOUNTING EQUATION
Score: 164/176
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Adjusting Entries
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2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance.
Question not attempted.
Pitman Company
ADJUSTED TRIAL BALANCE
Score: 0/103
October 31, 2019
1
Cash
2
Accounts Receivable
3
Prepaid Insurance
4
Supplies
5
Land
6
Building
7
Accumulated Depreciation-Building
8
Equipment
9
Accumulated Depreciation-Equipment
10
Accounts Payable
11
Unearned Rent
12
Salaries and Wages Payable
13
Jan Pitman, Capital
14
Jan Pitman, Drawing
15
Fees Earned
16
Rent Revenue
17
Salaries and Wages Expense
18
Utilities Expense
19
Advertising Expense
20
Repairs Expense
21
Depreciation Expense-Building
22
Depreciation Expense-Equipment
23
Insurance Expense
24
Supplies Expense
25
Miscellaneous Expense
26
Totals
ACCOUNT TITLE DEBIT CREDIT1
Cash
7,500.00
2
Accounts Receivable
38,400.00
3
Prepaid Insurance
7,200.00
4
Supplies
1,980.00
5
Land
112,500.00
6
Building
300,250.00
7
Accumulated Depreciation-Building
87,550.00
8
Equipment
135,300.00
9
Accumulated Depreciation-Equipment
97,950.00
10
Accounts Payable
12,150.00
11
Unearned Rent
6,750.00
12
Jan Pitman, Capital
371,000.00
13
Jan Pitman, Drawing
15,000.00
14
Fees Earned
324,600.00
15
Salaries and Wages Expense
193,370.00
16
Utilities Expense
42,375.00
17
Advertising Expense
22,800.00
18
Repairs Expense
17,250.00
19
Miscellaneous Expense
6,075.00
20
Totals
900,000.00
900,000.00
Explanation / Answer
Adjusting Entries Accounts title and explanation Debit $ Credit a. Insurance expense Account Dr. 6600 Prepaid insurance 6600 b. Supplies expense Dr. 1305.00 Supplies 1305 c. Depreciation expense Account Dr. 12000.00 Accumulated depreciation-Building 12000 d. Depreciation expense Account Dr. 8600 Accumulated depreciation-Equipment 8600 e. Unearned rent account dr. 4500 Rent revenue 4500 f. Wages and salaries expense Account Dr. 2800 Wages and salaries payable account 2800 g. Accounts receivable Account Dr. 10050 Fees earned Account 10050 TRIAL BALANCE Debit Credit Cash 7500 Accounts receivable 48450 Prepaid insurance 600 Supplies 675 Land 112500 Building 300250 Accumulated dep-Building 99550 Equipment 135300 Accumulated dep-Equipment 106550 Accounts payable 12150 Unearned rent 2250 Wages and salaries payable 2800 Jan Pitman, Capital 371000 Jan Pitman, Withdrawals 15000 Fees earned 334650 Rent revenue 4500 salaries and wages expense 196170 Utilities expense 42375 Advertisement 22800 Repairs 17250 Misc expense 6075 Supplies expense 1305 Insurance expense 6600 Depreciation expense-Building 12000 Depreciation expense-Equipment 8600 TOTAL 933450 933450