Trident Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end
Question:
Trident Repairs & Service, an electronics repair store, 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:
€¢ 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.
Corporate Financial Accounting
ISBN: 978-1337272124
15th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac