Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I am confused as to why my answer is market incorrect for the after adjusting. I can't understand why I was marked wrong. I hope

I am confused as to why my answer is market incorrect for the after adjusting. I can't understand why I was marked wrong. I hope this helps.

image text in transcribedimage text in transcribedimage text in transcribed

Adjusting Entries Crazy Mountain Outfitters Co., an outfitter store for fishing treks, prepared the following unadjusted trial balance at the end of its first year of operations: Crazy Mountain Outfitters Co. Unadjusted Trial Balance April 30, 20YS Debit Credit Balances Balances Cash 13,430 Accounts Receivable 99,180 Supplies 21,490 Equipment 457,290 Accounts Payable 20,950 Uneamed Fees 23,640 Common Stock 55,000 Retained Earnings 261,000 Dividends 17,730 Fees Eamed 537,200 Wages Expense 124,630 Rent Expense 95,080 Utilities Expense 68,220 Miscellaneous Expense 10,740 897,790 897,790 For preparing the adjusting entries, the following data were assembled: Supplies on hand on April 30 were $7,940. Fees earned but unbilled on April 30 were $9,720. Depreciation of equipment was estimated to be $13,430 for the year. Unpaid wages accrued on April 30 were $1,720. The balance in uneamed fens represented the April 1 receipt in advance for services to be provided. Only $18,6 of the services was provided between April 1 and April 30. Required: 1. Journalize the adjusting entries necessary on April 30, 2075. If an amount box does not require an entry, leave blank. Apr. 30 Supplies Expense 13,550 Supplies 13,550 30 Accounts Receivable 9,720 Fees Earned 9,720 30 Depreciation Expense 13,430 Accumulated Depreciation-Equipment 13,430 30 Wages Expense 1,720 Wages Payable 1,720 30 Unearned Fees 18,680 Fees Earned 18,680 Feedback Check My Work 1. Keep in mind that you will be making an adjusting entry for each of these that affects at least one income statement account revenue or expense) and one balance sheet account (asset or liability). As you go through each of these consider both sides of the transaction that results in an adjusting entry and identify related accounts. Remember, four different categories of adjusting entries include prepaid expenses (deferred expenses), uneared revenues (deferred revenues), accrued expenses (accrued abilities, and accrued revenues (accrued assets) plus the adjustment for depreciation expense. 2. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co. before the adjusting entries. Revenues 537,200 Expenses 298,670 Net income 238,530 3. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co. after the adjusting entries. Revenues $ X 570,560 325,650 Expenses Net income 244,910 4. Determine the effect of the adjusting entries on Retained Earnings. Retained Earnings increases Xbys X 6,380

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

5. Identify three characteristics of the dialectical approach.

Answered: 1 week ago

Question

7. Identify six intercultural communication dialectics.

Answered: 1 week ago