Reference no: EM13986216

Cambridge Company is a small editorial services company owned and operated by Dave Maier. On December 31, 2008, the end of the current year, Cambridge Company's accounting clerk prepared the unadjusted trial balance shown at the top of the following page. The data needed to determine year end adjustments are as follows:

a. Unexpired insurance at December 31, $2,700.
b. Supplies on hand at December 31, $480.
c. Depreciation of building for the year, $1,600.
d. Depreciation of equipment for the year, 84,400.
e. Rent unearned at December 31, $3,250.
f. Accrued salaries and wages at December 31, $2,800.
g. Fees earned but unbilled on December 31, $6,200. Instructions

Cambridge Company Unadjusted Trial Balance December 31, 2008

	Debit Balances	Credit Balances
Cash	5,550
Accounts Receivable	28,350
Prepaid Insurance	7,200
Supplies	1,980
Land	112,500
Building	212,250
Accumulated Depreciation - Building		137,550
Equipment	135,300
Accumulated Depreciation - Equipment		97,950
Accounts Payable		12,150
Unearned Rent		6,750
Dave Maier, Capital		201,000
Dave Maier, Drawing	15,000
Fees Earned		294,600
Salaries and Wages Expense	143,370
Utilities Expense	42,375
Advertising Expense	22,800
Repairs Expense	17,250
Miscellaneous Expense	6,075
	750,000	750,000

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 trial balance.