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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

following unadjusted trial balance:


Pitman Company

UNADJUSTED TRIAL BALANCE

October 31, 2019

ACCOUNT TITLE

DEBIT

CREDIT

1 Cash

7,135.00

 

2 Accounts Receivable

37,950.00

 

3 Prepaid Insurance

7,045.00

 

4 Supplies

1,895.00

 

5 Land

116,150.00

 

6 Building

148,750.00

 

7 Accumulated Depreciation-Building

 

88,280.00

8 Equipment

133,800.00

 

9 Accumulated Depreciation-Equipment

 

97,280.00

10 Accounts Payable

 

12,145.00

11 Unearned Rent

 

6,970.00

12

Jan Pitman, Capital

 

222,685.00

13

Jan Pitman, Drawing

15,300.00

 

14 Fees Earned

 

320,650.00

15 Salaries and Wages Expense

190,770.00

 

16 Utilities Expense

42,730.00

 

17 Advertising Expense

22,595.00

 

18 Repairs Expense

17,420.00

 

19 Miscellaneous Expense

6,470.00

 

20 Totals

748,010.00

748,010.00

The data needed to determine year-end adjustments are as follows:

a. Unexpired insurance at October 31, $6,080.

b. Supplies on hand at October 31, $470.

c. Depreciation of building for the year, $7,245.

d. Depreciation of equipment for the year, $4,140.

e. Unearned rent at October 31, $1,200.

f. Accrued salaries and wages at October 31, $3,550.

g. Fees earned but unbilled on October 31, $11,125.


Required:

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.

2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance.

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