Adjusting Entries Reliable Repairs and Service, an electronics repair store, pre

Question

Adjusting Entries

Reliable Repairs and 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:

Required:

Fees earned but unbilled on April 30 were $8,680.

Supplies on hand on April 30 were $7,090.

Depreciation of equipment was estimated to be $11,990 for the year.

The balance in unearned fees represented the April 1 receipt in advance for services to be provided. During April $16,660 of the services was provided.

Unpaid wages accrued on April 30 were $1,530.

1. Journalize the adjusting entries necessary on April 30, 2018.

2. Determine the revenues, expenses, and net income of Reliable Repairs and Service before the adjusting entries.

3. Determine the revenues, expenses, and net income of Reliable Repairs and Service after the adjusting entries.

4. Determine the effect of the adjusting entries on Retained Earnings.
Retained Earnings by $.

Reliable Repairs and Service Unadjusted Trial Balance April 30, 2018 Debit
Balances Credit
Balances Cash 11,990 Accounts Receivable 79,580 Supplies 19,180 Equipment 408,080 Accounts Payable 18,700 Unearned Fees 21,090 Common Stock 55,000 Retained Earnings 227,000 Dividends 15,820 Fees Earned 479,400 Wages Expense 111,220 Rent Expense 84,850 Utilities Expense 60,880 Miscellaneous Expense 9,590 801,190 801,190 > C i Secure I https://v2.cengsqenow.c Chapter 03 Homework (Application) (rank Adjusting Entries Raliahla Repairs nd Serví" an "trenirs repair stane, prepared th-tolning 4nadastet trial balanc at the "d of its first year at operations: 7 FX Reliable Repairs and Servic Unadjusted Trial Balance April 30, 2013 3 EX 0303 BLANKSHEETAL . 11,090 9.500 10,180 upplic: 8. EX.03 19 ALGO 9. EX.03-21 ALGO 10. CX03 26ILANKSIICLT.A 11 FX03-77 RI ANKSHFFTA-. Accounts Fayable 18,700 Uneamed Foas 21.090 Rctained Earning 15,A20 479,400 Fees Eamed Wages Expons Hent Expe Utili Expensc 12. PR.03-01.BLANKSHEETA. 111,220 13. PR.03 02.DLANKSI ILLTA. 30,880 1 PR3-O ALG Fur preparing the edjusting enries, Uhe Tullowing dela were assembled: Fors camed but unbillsd on April 30 were $8,080. Deproclation ot cqulpmant wa: ctimated to bo $1,DD0 tor the year the balance in unearned fees represented the Apri 1 recept in advance for services to be provided. Uuring April10,650 of the services was provided. · Check Ny Wk Progress: 1415 Items All work saved Email Irstructor Save and Exit Submit Assignment for Grading O lype hene to search

Explanation / Answer

2. Determine the revenues, expenses, and net income of Reliable Repairs and Service before the adjusting entries.

  Determine the revenues, expenses, and net income of Reliable Repairs and Service after the adjusting entries.

Retained Earnning increase by $270 (212590-212860)

Debit Credit a Accounts Receivable 8680 Fees Earned 8680 b Supplies Expense 12090 Supplies 12090 c Depreciation Expense 11990 Accumulated Depreciation—Equipment 11990 d unearned fees 16660 fees earned 16660 e Salaries and Wages Expense 1530 Salaries and Wages Payable 1530

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