reece financial services co which specializes in appliance repair services is owned 541672

Adjusting entries and adjusted trial balances

Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. Reece Financial Services Co.’s accounting clerk prepared the unadjusted trial balance at July 31, 2014, shown below.

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

1) Depreciation of building for the year, $6,400.

2) Depreciation of equipment for the year, $2,800.

3) Accrued salaries and wages at July 31, $900.

4) Unexpired insurance at July 31, $1,500.

5) Fees earned but unbilled on July 31, $10,200.

6) Supplies on hand at July 31, $615.

7) Rent unearned at July 31, $300.

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.