Reliable Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations: Reliable Repairs & Service UNADJUSTED TRIAL BALANCE April 30, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 10,350.00 2 Accounts Receivable 67,500.00 3 Supplies 16,200.00 4 Equipment 116,100.00 5 Accounts Payable 15,750.00 6 Unearned Fees 18,000.00 7 Common Stock 10,000.00 8 Retained Earnings 111,500.00 9 Dividends 13,500.00 10 Fees Earned 294,750.00 11 Wages Expense 94,500.00 12 Rent Expense 72,000.00 13 Utilities Expense 51,750.00 14 Miscellaneous Expense 8,100.00 15 Totals 450,000.00 450,000.00 For preparing the adjusting entries, the following data were assembled: • Fees earned but unbilled on April 30 were $9,850. • Supplies on hand on April 30 were $4,660. • Depreciation of equipment was estimated to be $6,470 for the year. • The balance in unearned fees represented the April 1 receipt in advance for services to be provided. During April, $15,000 of the services were provided. • Unpaid Wages accrued on April 30 were $5,200. Required: 1. Journalize the adjusting entries necessary on April 30, 2018. Refer to the Chart of Accounts for exact wording of account titles. 2. Determine the revenues, expenses, and net income of Reliable Repairs & Service before the adjusting entries. 3. Determine the revenues, expense, and net income of Reliable Repairs & Service after the adjusting entries.
Reliable Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations: Reliable Repairs & Service UNADJUSTED TRIAL BALANCE April 30, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 10,350.00 2 Accounts Receivable 67,500.00 3 Supplies 16,200.00 4 Equipment 116,100.00 5 Accounts Payable 15,750.00 6 Unearned Fees 18,000.00 7 Common Stock 10,000.00 8 Retained Earnings 111,500.00 9 Dividends 13,500.00 10 Fees Earned 294,750.00 11 Wages Expense 94,500.00 12 Rent Expense 72,000.00 13 Utilities Expense 51,750.00 14 Miscellaneous Expense 8,100.00 15 Totals 450,000.00 450,000.00 For preparing the adjusting entries, the following data were assembled: • Fees earned but unbilled on April 30 were $9,850. • Supplies on hand on April 30 were $4,660. • Depreciation of equipment was estimated to be $6,470 for the year. • The balance in unearned fees represented the April 1 receipt in advance for services to be provided. During April, $15,000 of the services were provided. • Unpaid Wages accrued on April 30 were $5,200. Required: 1. Journalize the adjusting entries necessary on April 30, 2018. Refer to the Chart of Accounts for exact wording of account titles. 2. Determine the revenues, expenses, and net income of Reliable Repairs & Service before the adjusting entries. 3. Determine the revenues, expense, and net income of Reliable Repairs & Service after the adjusting entries.
Chapter4: The Adjustment Process
Section: Chapter Questions
Problem 13PA: Prepare adjusting journal entries, as needed, considering the account balances excerpted from the...
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Reliable Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations:
Reliable Repairs & Service
UNADJUSTED TRIAL BALANCE
April 30, 2018
ACCOUNT TITLE | DEBIT | CREDIT | |
---|---|---|---|
1
|
Cash
|
10,350.00
|
|
2
|
Accounts Receivable
|
67,500.00
|
|
3
|
Supplies
|
16,200.00
|
|
4
|
Equipment
|
116,100.00
|
|
5
|
Accounts Payable
|
|
15,750.00
|
6
|
Unearned Fees
|
|
18,000.00
|
7
|
Common Stock
|
|
10,000.00
|
8
|
|
|
111,500.00
|
9
|
Dividends
|
13,500.00
|
|
10
|
Fees Earned
|
|
294,750.00
|
11
|
Wages Expense
|
94,500.00
|
|
12
|
Rent Expense
|
72,000.00
|
|
13
|
Utilities Expense
|
51,750.00
|
|
14
|
Miscellaneous Expense
|
8,100.00
|
|
15
|
Totals
|
450,000.00
|
450,000.00
|
For preparing the adjusting entries , the following data were assembled:
• | Fees earned but unbilled on April 30 were $9,850. |
• | Supplies on hand on April 30 were $4,660. |
• | |
• | The balance in unearned fees represented the April 1 receipt in advance for services to be provided. During April, $15,000 of the services were provided. |
• | Unpaid Wages accrued on April 30 were $5,200. |
Required: | |
1. | Journalize the adjusting entries necessary on April 30, 2018. Refer to the Chart of Accounts for exact wording of account titles. |
2. | Determine the revenues, expenses, and net income of Reliable Repairs & Service before the adjusting entries. |
3. | Determine the revenues, expense, and net income of Reliable Repairs & Service after the adjusting entries. |
4. | Determine the effect of the adjusting entries on Retained Earnings. |
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