Galloway Company is a small editorial services company owned and operated by Fran Briggs.

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Galloway Company is a small editorial services company owned and operated by Fran Briggs. On July 31, 2012, the end of the current year, Galloway Company's accounting clerk prepared the unadjusted trial balance shown below.

 

                              Galloway Company

                            Unadjusted Trial Balance

                                    July 31, 2012

 

                                                    Debit                 Credit

Cash                                         7,500

Accounts Receivable                38,400 

Prepaid Insurance                     7,200

Supplies                                  1,980

Land                                    112,500 

Building                               200,250 

Accumulated Depreciation-Building                        137,550

Equipment                            135,300 

Accumulated Depreciation-Equipment                      97,950

Accounts Payable                                                  12,150

Unearned Rent                                                        6,750

Salaries and Wages Payable                                       -

Fran Briggs, Capital                                              221,000

Fran Briggs, Drawing              15,000 

Fees Earned                                                        324,600

Rent Revenue -

Salaries and Wages Expense 193,370 

Utilities Expense                     42,375 

Advertising Expense                22,800 

Repairs Expense                     17,250 

Depreciation Expense-Building       - 

Depreciation Expense-Equipment   - 

Insurance Expense                       - 

Supplies Expense                         - 

Miscellaneous Expense            6,075

 

Total                                  $800,000                   $800,000

 

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

 

a. Unexpired insurance at July 31, $4,800. 

b. Supplies on hand at July 31, $600. 

c. Depreciation of building for the year, $3,100. 

d. Depreciation of equipment for the year, $2,700. 

e. Rent unearned at July 31, $1,750. 

f. Accrued salaries and wages at July 31, $3,000. 

g. Fees earned but unbilled on July 31, $10,750.

 

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. 

 

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

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