Question

ed Trial Balances Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. Reece Financial Services accounting der prepared the following unadjusted trial balance at July 31, 2019: Reece Financial Services Co. Unadjusted Trial Balance July 31, 2049 Debit Credit Balances Balances 10,200 34,750 6,000 Cash Accounts Receivable Prepaid Insurance Supplies Land Building Accumulated Depreciation Building Equipment Accumulated Depreciation Equipment Accounts Payable Unearned Rent 1,725 50,000 155,750 62,850 45,000 17,650 3,750 3,600

Answer 1

1) Adjusting Entries
Date	Account Titles and Explanations	Debit	Credit
Jul. 31	Depreciation Expense - Building	$6,400
	Accumulated Depreciation - Building		$6,400
	(To record the depreciation on buildings)
Jul. 31	Depreciation Expense - Equipment	$2,800
	Accumulated Depreciation - Equipment		$2,800
	(To record the depreciation on Equipment)
Jul. 31	Salaries and Wages Expense	$900
	Salaries and Wages Payable		$900
	(To record the accrual of salaries and wages expense)
Jul. 31	Insurance Expense	$4,500
	Prepaid Insurance ($6,000 - $1,500)		$4,500
	(To record the expiration of prepaid insurance)
Jul. 31	Accounts Receivable	$10,200
	Fees Revenue		$10,200
	(To record the fees earned and receivable)
Jul. 31	Supplies Expense	$1,110
	Supplies ($1,725 - $615)		$1,110
	(To record the usage of supplies)
Jul. 31	Unearned Rent Revenue ($3,600 - $300)	$3,300
	Rent Revenue		$3,300
	(To record the rent earned)

2) Adjusted Trial Balance
Reece Financial Services Co.
Adjusted Trial Balance
July 31, 20Y9
	Debit	Credit
Cash	$10,200
Accounts Receivable ($34,750 + $10,200)	$44,950
Prepaid Insurance	$1,500
Supplies	$615
Land	$50,000
Buildings	$155,750
Accumulated Depreciation - Building ($62,850 + $6,400)		$69,250
Equipment	$45,000
Accumulated Depreciation - Building ($17,650 + $2,800)		$20,450
Accounts Payable		$3,750
Unearned Rent		$300
Common Stock		$60,000
Retained Earnings		$93,550
Dividends	$8,000
Fees earned ($158,600 + $10,200)		$168,800
Salaries and wages expenses ($56,850 + $900)	$57,750
Utilities Expense	$14,100
Advertising Expense	$7,500
Repairs Expense	$6,100
Miscellaneous Expense	$4,025
Depreciation Expense - Building	$6,400
Depreciation Expense - Equipment	$2,800
Salaries and Wages Payable		$900
Insurance Expense	$4,500
Supplies Expense	$1,110
Rent Revenue		$3,300
Totals	$420,300	$420,300