Econo Company, an electronics repair 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.

Instructions
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 Randy Huntsinger, Capital of the adjustingentries.

Transcribed Image Text:

Econo Company Unadjusted Trial Balance Aprll 30, 2012 Credit Balances Balances Cash 13,800 90,000 Equipment. Accounts Payable Unearned Fees _ _. . .. 454,800 24,000 312,000 Randy Huntsinger, Drawing.... 543,000 Wages Expense.. 96,000 900,000 900,000