1. Preparation of the adjusting entries for
Sears editing ‘company
Sears editing ‘company Adjusting Entries
a. Dr Insurance expense $1,800
($7,200-$5,400)
Cr Prepaid insurance $1,800
(To record insurance expense)
b. Dr Supplies expense $1,605
($1980 - $375)
Cr Supplies $1,605
(To record supplies expense)
c. Dr Depreciation expense $6,000
Cr Accumulated depreciation-building $6,000
(To record depreciation expense on building)
d. Dr Depreciation expense $3,000
Cr Accumulated depreciation-equipment $3,000
(To record depreciation expense on equipment)
e. Dr Unearned rent $5,400
($6,750-$1,350)
Cr Rent revenue $5,400
(To record rent earned from unearned rent)
f. Dr Salaries and wages expense $2,900
Cr Salaries and wages payable $2,900
(To record salaries and wages expense)
g. Dr Accounts receivable $18,600
Cr Fees earned $18,600
(To record accrued revenue)
2. Preparation of an adjusted trial balance.
Sears editing ‘Company Adjusted Trial balance
Debit side
Cash $7,500
Account Receiveble $57,000
Prepaid Insurance $5,400
Supplies $375
Land $112,500
Building $150,250
Equipment $135,300
Drawing $15,000
Salaries and wages expense $196,270
Utilities expense $42,375
Advertising expense $22,800
Repair expense $17,250
Depreciation expense-Building $6,000
Depreciation expense-Equipment $3,000
Insurance expense $1,800
Supplies expense $1,605
Miscellaneous expense $6,075
Total Debit side $780,500
Credit side
Accumulated Depreciation-Building $93,550
Accumulated Depreciation-Equipment $100,950
Account payable $12,150
Unearned rents $1,350
Salaries and wages payable $2,900
Capital stock $221,000
Fees earned $343,200
Rent revenue $5,400
Total Credit side $780,500
Learn more here:brainly.com/question/21304366
and multiply if by 1.45