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Chapter 3 The Adjusting Process
OBJ. 2, 3, 4
PR 3-SA Adjusting entries and adjusted trial balances
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 Company’s account-
ing clerk prepared the following unadjusted trial balance:
v2. Total of Debit
column: $776 180
Rowland Company
Unadjusted Trial Balance
August 31, 2016
General Ledger
Credit
Balances
Debit
Balances
Cash….
7,500
38,400
Accounts Receivable.
Prepaid Insurance
Supplies.
Land
Building
Accumulated Depreciation-Building..
Equipment….
Accumulated Depreciation-Equipment.
Accounts Payable
Unearned Rent…
7,200
1,980
112,500
150,250
87,550
135,300
97,950
12,150
6,750
75,000
Common Stock
Retained Earnings
146,000
Dividends
15,000
Fees Earned.
324,600
Salaries and Wages Expense.
Utilities Expense
Advertising Expense..
Repairs Expense…
Miscellaneous Expense
193,370
42,375
22,800
17,250
6,075
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 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.
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