Brown Trout Outfitters Co., an outfitter store for fishing treks, 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:
a. Supplies on hand on September 30 were $1,850.
b. Fees earned but unbilled on September 30 were $6,500.
c. Depreciation of equipment was estimated to be $2,800 for the year.
d. Unpaid wages accrued on September 30 were $1,275.
e. The balance in unearned fees represented the September 1 receipt in advance for services to be provided. Only $3,000 of the services was provided between September 1 and September 30.

Instructions
1. Journalize the adjusting entries necessary on September 30, 2012.
2. Determine the revenues, expenses, and net income of Brown Trout Outfitters Co. before the adjusting entries.
3. Determine the revenues, expense, and net income of Brown Trout Outfitters Co. after the adjusting entries.
4. Determine the effect on Jon Wolfe, Capital of the adjustingentries.

Transcribed Image Text:

Brown Trout Outfitters Co. Unadjusted Trial Balance September 30, 2012 Debit Credit Balances Balances Cash Accounts Receivable .26,400 87,600 12,200 19,200 222,800 Unearned Fees .10,000 295,800 Rent Expense 55,000 550,000 550,000