Adjusting Entries Reliable Repairs and Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations: Reliable Repairs and Service Unadjusted Trial Balance April 30, 2018 Debit Balances Credit Balances Cash 13,880 Accounts Receivable 92,140 Supplies 22,200 Equipment 464,980 Accounts Payable 21,650 Unearned Fees 24,420 Common Stock 55,000 Retained Earnings 264,000 Dividends 18,320 Fees Earned 555,060 Wages Expense 128,770 Rent Expense 98,250 Utilities Expense 70,490 Miscellaneous Expense 11,100 920,130 920,130 For preparing the adjusting entries, the following data were assembled: Fees earned but unbilled on April 30 were $10,050. Supplies on hand on April 30 were $8,200. Depreciation of equipment was estimated to be $13,880 for the year. The balance in unearned fees represented the April 1 receipt in advance for services to be provided. During April $19,290 of the services was provided. Unpaid wages accrued on April 30 were $1,780. Required: 1. Journalize the adjusting entries necessary on April 30, 2018. a. fill in the blank 159e9c029fb9f85_2 fill in the blank 159e9c029fb9f85_4 b. fill in the blank 159e9c029fb9f85_6 fill in the blank 159e9c029fb9f85_8 c. fill in the blank 159e9c029fb9f85_10 fill in the blank 159e9c029fb9f85_12 d. fill in the blank 159e9c029fb9f85_14 fill in the blank 159e9c029fb9f85_16 e. fill in the blank 159e9c029fb9f85_18 fill in the blank 159e9c029fb9f85_20 2. Determine the revenues, expenses, and net income of Reliable Repairs and Service before the adjusting entries. Revenues $fill in the blank 33ce66084019018_1 Expenses fill in the blank 33ce66084019018_2 Net income $fill in the blank 33ce66084019018_3 3. Determine the revenues, expenses, and net income of Reliable Repairs and Service after the adjusting entries. Revenues $fill in the blank 33ce66084019018_4 Expenses fill in the blank 33ce66084019018_5 Net income $fill in the blank 33ce66084019018_6 4. Determine the effect of the adjusting entries on Retained Earnings. Retained Earnings by $fill in the blank 33ce66084019018_8
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Reliable Repairs and Service, an electronics repair store, prepared the following unadjusted
| Reliable Repairs and Service | ||||
| Unadjusted Trial Balance | ||||
| April 30, 2018 | ||||
| Debit Balances |
Credit Balances |
|||
| Cash | 13,880 | |||
| 92,140 | ||||
| Supplies | 22,200 | |||
| Equipment | 464,980 | |||
| Accounts Payable | 21,650 | |||
| Unearned Fees | 24,420 | |||
| Common Stock | 55,000 | |||
| 264,000 | ||||
| Dividends | 18,320 | |||
| Fees Earned | 555,060 | |||
| Wages Expense | 128,770 | |||
| Rent Expense | 98,250 | |||
| Utilities Expense | 70,490 | |||
| Miscellaneous Expense | 11,100 | |||
| 920,130 | 920,130 |
For preparing the adjusting entries, the following data were assembled:
- Fees earned but unbilled on April 30 were $10,050.
- Supplies on hand on April 30 were $8,200.
Depreciation of equipment was estimated to be $13,880 for the year.- The balance in unearned fees represented the April 1 receipt in advance for services to be provided. During April $19,290 of the services was provided.
- Unpaid wages accrued on April 30 were $1,780.
Required:
1. Journalize the adjusting entries necessary on April 30, 2018.
| a. | fill in the blank 159e9c029fb9f85_2 | ||
| fill in the blank 159e9c029fb9f85_4 | |||
| b. | fill in the blank 159e9c029fb9f85_6 | ||
| fill in the blank 159e9c029fb9f85_8 | |||
| c. | fill in the blank 159e9c029fb9f85_10 | ||
| fill in the blank 159e9c029fb9f85_12 | |||
| d. | fill in the blank 159e9c029fb9f85_14 | ||
| fill in the blank 159e9c029fb9f85_16 | |||
| e. | fill in the blank 159e9c029fb9f85_18 | ||
| fill in the blank 159e9c029fb9f85_20 |
2. Determine the revenues, expenses, and net income of Reliable Repairs and Service before the adjusting entries.
| Revenues | $fill in the blank 33ce66084019018_1 |
| Expenses | fill in the blank 33ce66084019018_2 |
| Net income | $fill in the blank 33ce66084019018_3 |
3. Determine the revenues, expenses, and net income of Reliable Repairs and Service after the adjusting entries.
| Revenues | $fill in the blank 33ce66084019018_4 |
| Expenses | fill in the blank 33ce66084019018_5 |
| Net income | $fill in the blank 33ce66084019018_6 |
4. Determine the effect of the adjusting entries on Retained Earnings.
Retained Earnings by $fill in the blank 33ce66084019018_8
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
