Financial and Managerial Accounting

15th Edition

ISBN: 9780357297162

Author: Carl S. Warren; Jefferson P. Jones; William B. Tayler, Ph.D., CMA

Publisher: Cengage Learning US

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Textbook Question

Chapter 3, Problem 3PA

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.

Expert Solution & Answer

Chapter 3 Solutions

Financial and Managerial Accounting

Ch. 3 - How are revenues and expenses reported on the...Ch. 3 - Is the matching concept related to (A) the cash...Ch. 3 - Why are adjusting entries needed at the end of an...Ch. 3 - What is the difference between adjusting entries...Ch. 3 - Identify the four different categories of...Ch. 3 - If the effect of the debit portion of an adjusting...Ch. 3 - If the effect of the credit portion of an...Ch. 3 - Prob. 8DQ Ch. 3 - Prob. 9DQ Ch. 3 - (A) Explain the purpose of the two accounts:...

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Solution Summary: The author records the adjusting entries on November 30, 20Y3. Adjusting entries are passed in the books of accounts at the end of one accounting period.

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