Adjusting entries Trident Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations: For preparing the adjusting entries, the following data were assembled: • Fees earned but unbilled on November 30 were $7,000. • Supplies on hand on November 30 were $1,300. • Depreciation of equipment was estimated to be $7,200 for the year. • The balance in unearned fees represented the November 1 receipt in advance for services to be provided. During November, $13,500 of the services were provided. • Unpaid wages accrued on November 30 were $4,800. Instructions 1. Journalize the adjusting entries necessary on November 30, 20Y3. 2. Determine the revenues, expenses, and net income of Trident Repairs & Service before the adjusting entries. 3. Determine the revenues, expense, and net income of Trident Repairs & Service after the adjusting entries. 4. Determine the effect of the adjusting entries on Retained Earnings.

BuyFind

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663
BuyFind

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663

Solutions

Chapter 3, Problem 3PA
Textbook Problem

Adjusting entries

Trident Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations:

Chapter 3, Problem 3PA, Adjusting entries Trident Repairs  Service, an electronics repair store, prepared the following

For preparing the adjusting entries, the following data were assembled:

• Fees earned but unbilled on November 30 were $7,000.

• Supplies on hand on November 30 were $1,300.

• Depreciation of equipment was estimated to be $7,200 for the year.

• The balance in unearned fees represented the November 1 receipt in advance for services to be provided. During November, $13,500 of the services were provided.

• Unpaid wages accrued on November 30 were $4,800.

Instructions

1. Journalize the adjusting entries necessary on November 30, 20Y3.

2. Determine the revenues, expenses, and net income of Trident Repairs & Service before the adjusting entries.

3. Determine the revenues, expense, and net income of Trident Repairs & Service after the adjusting entries.

4. Determine the effect of the adjusting entries on Retained Earnings.

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Chapter 3 Solutions

Financial And Managerial Accounting
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