Misfire Company_adjusting entries and adjusted trialbalance

August 15th, 2017

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Misfire Company is a small editorial services company owned and operated by Pedro Borman. On August 31, 2010, the end of the current year, Misfire Companys accounting clerk prepared the unadjusted trial balance shown on the next page.
The data needed to determine year-end adjustments are as follows:

Misfire Company
Trial Balance
August 31, 2010
	Debit	Credit
Cash	$7,500
Accoutns receivable	$38,400
Prepaid Insurance	$7,200
Supplies	$1,980
Land	$1,12,500
Building	$2,00,250
Accumulated Depreciation Building		$1,37,550
Equipment	$1,35,300
Accumulated Depreciation Equipment		$97,950
Accoutns Payable		$12,150
Unearned rent		$6,750
Pedro Borman Capital		$2,21,000
Pedro Borman Drawing	$15,000
Fees earned		$3,24,600
Salaries and wages Expense	$1,93,370
Utilities Expense	$42,375
Adverting Expense	$22,800
Repairs Expense	$17,250
Miscellneous Expense	$6,075
	$8,00,000	$8,00,000

(a) Unexpired insurance at August 31, $1,800.
(b) Supplies on hand at August 31, $750.
(c) Depreciation of building for the year, $2,000.
(d) Depreciation of equipment for the year, $5,000.
(e) Rent unearned at August 31, $2,850.
(f) Accrued salaries and wages at August 31, $2,800.
(g) Fees earned but unbilled on August 31, $12,380.

Instructions
1. Journalize the adjusting entries. Add additional accounts as needed.
2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trialbalan