Question
Adjusting Entries Electro Repairs & Service, an electronics repair store prepared the unadjusted trail balance shown below at the end of its first year of
Adjusting Entries
Electro Repairs & Service, an electronics repair store prepared the unadjusted trail balance shown below at the end of its first year of operations.
Electro Repairs & Service
Unadjusted Trail Balance
June 30,2014
Debit Balance Credit Balance
Cash 13800
Accounts Receivable 90000
Supplies 21600
Equipment 154800
Account Payable 21000
Unearned Fees 24000
Amy Wolf Capital 162000
Amy Wolf Drawing 18000
Fees Earned 393000
Wages Expense 126000
Rent Expense 96000
Utilities Expenses 69000
Miscellaneous Expenses 10800
Totals 600000 600000
for preparing the adjusting entries, the following data were assembled:
a. Fees earned but unbilled on June 30 were $12,700.
b. Supplies on hand on June 30 were $ 4175.
c. Depreciation of equipment was estimated to be $7400 for the year.
d. The balance in unearned fees represented the June 1 receipt in advance for services to be provided. Only $14,200 of the services was provided between June 1 and June 30.
e.. Unpaid wages accrued on June 30, were $ 1100.
1. Journalize the adjusting entries necessary on June 30. 2014.
a. Accounts Receivable
Fees Earned
b. Supplies Expense
Supplies
c. Depreciation Expense
Accumulated Depreciation
d. Unearned Fees
Fees Earned
e. Wages Expense
Wages Payable
2. Determine the revenues, expenses, and net income of Electro Service & Repairs before the adjusting entries.
a, Revenues $ __________
b. Expenses $ __________
c. net income $_________
3. Determine the revenues, expenses, and net income of Electro Service & Repairs after the adjusting entries.
a. Revenues $ __________
b. Expenses $ __________
c. Net income $ _________
4. Determine the effect of the adjusting entries on Amy Wolf, Capital.
The capital account increasas by $ ____________ .
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started