Econo Company, an electronics repaid store, prepared
Econo Company, an electronics repaid store, prepared the unadjusted trial balance shown below at the end of its first year of operations.
For preparing the adjusting entries, the following data were assembled:
a. Fees earned but unbilled on April 30 were $10,000.
b. Supplies on hand on April 30 were $8,150.
c. Depreciation of equipment was estimated to be $13,800 for the year.
d. The balance in unearned fees represented the April 1 receipt in advance for services to be provided. Only $19,000 of the services was provided between April 1 and April 30.
e. Unpaid wages accrued on April 30 were $1,770.
1. Journalize the adjusting entries necessary on April 30, 2012.
2. Determine the revenues, expenses, and net income of Econo company before the adjusting entries.
3. Determine the revenues, expense, and net income of Econo Company after the adjusting entries.
4. Determine the effect on retained earnings of the adjustingentries.