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.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

Related questions

Question

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

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