Galloway Company is a small editorial services company owned and operated by Fran Briggs. On July 31, 2012, the end of the current year, Galloway Company’s accounting clerk prepared the unadjusted trial balance shown below.

Galloway Company

Unadjusted Trial Balance

July 31, 2012

Debit Credit

Cash 7,500

Accounts Receivable 38,400

Prepaid Insurance 7,200

Supplies 1,980

Land 112,500

Building 200,250

Accumulated Depreciation-Building 137,550

Equipment 135,300

Accumulated Depreciation-Equipment 97,950

Accounts Payable 12,150

Unearned Rent 6,750

Salaries and Wages Payable –

Fran Briggs, Capital 221,000

Fran Briggs, Drawing 15,000

Fees Earned 324,600

Rent Revenue –

Salaries and Wages Expense 193,370

Utilities Expense 42,375

Advertising Expense 22,800

Repairs Expense 17,250

Depreciation Expense-Building –

Depreciation Expense-Equipment –

Insurance Expense –

Supplies Expense –

Miscellaneous Expense 6,075

Total $800,000 $800,000

The data needed to determine year-end adjustments are as follows:

a. Unexpired insurance at July 31, $4,800.

b. Supplies on hand at July 31, $600.

c. Depreciation of building for the year, $3,100.

d. Depreciation of equipment for the year, $2,700.

e. Rent unearned at July 31, $1,750.

f. Accrued salaries and wages at July 31, $3,000.

g. Fees earned but unbilled on July 31, $10,750.


1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation Expense Building; Depreciation Expense Equipment; and Supplies Expense.

2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance.