Before starting this problem, click on the worksheet tabs below for Problem 3-5B, which has been

completed as a "Demo or Practice" Problem. Then complete Problem 3-5A. Good luck! Name______________________________________________ Problem 3-5A, page 140-141. a. Journalize the adjusting entries. b. Hint: Fees earned will be used twice. c. Post the Adjusting Entries to the T-Accounts and prepare a Trial Balance after computing the new account balances. d. After posting from the General Journal to your T-accounts, be sure to enter the ACCOUNT NUMBER IN THE POST REF COLUMN. General Journal Date Account Title a. Insurance Expense Prepaid Insurance Insurance used up or expired b.

PR 54 13

Debit 2,400 $

Credit 2,400

c.

d.

e.

f.

g.

Now click on the worksheet tab below to post your adjusting entries to the t-accounts. Remember: T-accounts are just the skeleton form of a ledger. After posting the adjusting entries, find the new account balances. Transfer those account balances to the Adjusted Trial Balance. Your Adjusted Trial Balance should be

b. Use the "T" accounts to post your adjusting entries from the general journal. If you want to make full ledgers or use your own forms, then please do. Remember a "T" is a skeleton of a ledger. If you need to add some "T" accounts for any other accounts not listed, there are some blanks at the bottom. Cash $ 11 7,500 Accts. Rec. $ 38,400 12 Prepaid Insurance 13 $ 7,200 $ 2,400 $ 4,800

Land 15 $ 112,500

Building 16 $ 200,250

Acc Deprec-Bldg $

17 137,550

Acc. Deprec: Equip. 15 $ 97,950

Sal/Wages Payable 21

Accounts Payable 22 $ 12,150

Briggs, Capital $

31 221,000

Briggs, Drawing $ 15,000

32

Fees Earned

41 $

324,600

Utilities Exp $ 42,375

51

Advertising Exp 52 $ 22,800

Repairs Exp 53 $ 17,250

Deprec. Exp: Equip. 56

Deprec Exp: Bldg 57

Sal/Wages Expense 57 $ 193,370

Misc Expense 59 $ 6,075

c. Prepare the Adjusted Trial Balance. It should look like the one on page 124 or 130. If I omitted an account, please add it in.

Galloway Company Adjusted Trial Balance 31-Jul-12 Cash Accts. Rec. Prepaid Insurance Supplies Land Building Acc. Deprec: Bldg Equipment Acc. Deprec: Equip. Accounts Payable Sal/Wages Payable Unearned Rent Latty, Capital Latty, Drawing Fees Earned Rent Revenue Sal/Wages Expense Utilities Expense Advertising Expense Repairs Expense Insurance Expense Depreciation Exp: Equipment Depreciation Exp: Building Supplies Expense Miscellaneous Expense Totals $ $ -

Adjusted Trial Balance Debit and Credit Totals should equal $819,550.00

some blanks

Supplies $ 1,980

14

Equipment 18 $ 135,300

Unearned Rent 23 $

6,750

Rent Revenue 42

Insurance Exp 54 $ 2,400

Supplies Exp 58