Question

Trident Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations:

Trident Repairs & Service

UNADJUSTED TRIAL BALANCE

November 30, 20Y3

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	9,880.00
2	Accounts Receivable	67,550.00
3	Supplies	16,160.00
4	Equipment	114,550.00
5	Accounts Payable		15,790.00
6	Unearned Fees		17,600.00
7	Common Stock		9,500.00
8	Retained Earnings		112,710.00
9	Dividends	13,210.00
10	Fees Earned		291,830.00
11	Wages Expense	94,040.00
12	Rent Expense	71,870.00
13	Utilities Expense	52,130.00
14	Miscellaneous Expense	8,040.00
15	Totals	447,430.00	447,430.00

For preparing the adjusting entries, the following data were assembled:

•	Fees earned but unbilled on November 30 were $9,890.
•	Supplies on hand on November 30 were $4,770.
•	Depreciation of equipment was estimated to be $6,470 for the year.
•	The balance in unearned fees represented the November 1 receipt in advance for services to be provided. During November, $15,120 of the services were provided.
•	Unpaid Wages accrued on November 30 were $5,280.

	Required:
1.	Journalize the adjusting entries necessary on November 30, 20Y3. Refer to the Chart of Accounts for exact wording of account titles.
2.	Determine the revenues, expenses, and net income of Trident Repairs & Service before the adjusting entries.
3.	Determine the revenues, expenses, and net income of Trident Repairs & Service after the adjusting entries.
4.	Determine the effect of the adjusting entries on Retained Earnings.

CHART OF ACCOUNTS
Trident Repairs & Service
General Ledger
ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Equipment 15 Accumulated Depreciation-Equipment LIABILITIES 21 Accounts Payable 22 Wages Payable 23 Unearned Fees EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends	REVENUE 41 Fees Earned EXPENSES 51 Wages Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 56 Utilities Expense 59 Miscellaneous Expense

1. Journalize the adjusting entries necessary on November 30, 20Y3. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Adjusting Entries
2
3
4
5
6
7
8
9
10
11

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

Before Adjusting Entries

1	Revenues
2	Expenses
3	Net income

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

After Adjusting Entries

1	Revenues
2	Expenses
3	Net income

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

The Retained Earnings account increases by $ _____________

Answer 1

	Trident Repairs And Services
	Adjustment Entries
Sl No	Date	Description	Debit	Credit		Type of Account
1	30th Nov 20Y3	Accounts Receivable	$9,890			Asset
		Fees Earned		$9,890		Income
2	30th Nov 20Y3	Depreciation Expense	$4,770			Expense
		Equipment		$4,770		Asset
3	30th Nov 20Y3	Unearned Fee	$15,120			Liability
		Fees Earned		$15,120		Income
4	30th Nov 20Y3	Wage Expenses	$5,280			Expense
		Wages Payable		$5,280		Liability

Trident Repairs And Services
Income Statement as at Nov 20Y3 Before Adjustement Entries
Revenue		$
	Fees Earned	291,830.00
	Total (A)	291,830.00
Expenses
	Wage Expenses	94,040.00
	Rent Expenses	71,870.00
	Utiity expenses	52,130.00
	Miscellaneous Expenses	8,040.00
	Total (B)	226,080.00
Net Income	(A-B)	65,750.00

Trident Repairs And Services
Income Statement as at Nov 20Y3 After Adjustement Entries
Revenue		$
	Fees Earned	316,840.00
	Total (A)	316,840.00
Expenses
	Wage Expenses	99,320.00
	Rent Expenses	71,870.00
	Utiity expenses	52,130.00
	Miscellaneous Expenses	8,040.00
	Total (B)	231,360.00
Net Income	(A-B)	85,480.00

Trident Repairs And Services
Retained Earnings as at Novemeber 20Y3 after Adjus
			$
	Retained Earnings before Adjustments		112,710.00
	Add :Increase in net income		19,730.00
	(after adjustments)
	Retained Earnings After Adjustments		132,440.00

Retained Earnings Increases by $ 19730 (as above)