Referencing Styles : Harvard
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 on the next page.
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.
Galloway Company
Unadjusted Trial Balance
July 31, 2012
Debit
Balances
Credit
Balances
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
Fran Briggs, Capital 221,000
Fran Briggs, Drawing 15,000
Fees Earned 324,600
Salaries and Wages Expense 193,370
Utilities Expenses 42,375
Advertising Expense 22,800
Repairs Expense 17,250
Miscellaneous Expense 6,075
800,000 800,000
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.