Question

1. Adjusting Entries

   Crazy Mountain Outfitters Co., an outfitter store for fishing treks, prepared the following unadjusted trial balance at the end of its first year of operations:

   Crazy Mountain Outfitters Co.
   Unadjusted Trial Balance
   April 30, 20Y5
   	Debit Balances		Credit Balances
   Cash	14,150
   Accounts Receivable	93,980
   Supplies	22,650
   Equipment	483,900
   Accounts Payable			22,080
   Unearned Fees			24,910
   Common Stock			55,000
   Retained Earnings			280,000
   Dividends	18,680
   Fees Earned			566,150
   Wages Expense	131,350
   Rent Expense	100,210
   Utilities Expense	71,900
   Miscellaneous Expense	11,320
   	948,140		948,140

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

   • Supplies on hand on April 30 were $8,360.
   • Fees earned but unbilled on April 30 were $10,240.
   • Depreciation of equipment was estimated to be $14,150 for the year.
   • Unpaid wages accrued on April 30 were $1,810.
   • The balance in unearned fees represented the April 1 receipt in advance for services to be provided. Only $19,680 of the services was provided between April 1 and April 30.

   Required:

   1. Journalize the adjusting entries necessary on April 30, 20Y5. If an amount box does not require an entry, leave it blank.

   Apr. 30
   30
   30
   30
   30

   2. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co. before the adjusting entries.

   Revenues	$
   Expenses
   Net income	$

   3. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co. after the adjusting entries.

   Revenues	$
   Expenses
   Net income	$

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

Check My Work2 more Check My Work uses remaining.

Answer 1

Answer-

Answer 1
	Adjusting Entries
Sl no.	Date	Accounts	Debit	Credit
a	4/30/2015	Supplies Expenses	14,290
		Supplies		14,290
b	4/30/2015	Account Receivable	10,240
		Fee Earned		10,240
c	4/30/2015	Depreciation - Equip	14,150
		Accumulated Dep - Equip		14,150
d	4/30/2015	Wages Expenses	1,810
		Wages Payable		1,810
e	4/30/2015	Unearned Fee	19,680
		Fee earned		19,680

Answer -2
	Income Statement before adjusting entries
	Revenue
	Fee Earned		566,150
	Expenses
	Wages Expenses	131,350
	Rent Expenses	100,210
	Utilities Expenses	71,900
	Miscellaneous Exp.	11,320	314,780
	Net Income		251,370

Answer -3	Income Statement after adjusting entries
	Revenue
	Fee Earned		596,070
	Expenses
	Supplies Expenses	14,290
	Wages Expenses	133,160
	Rent Expenses	100,210
	Utilities Expenses	71,900
	Depreciation Equip	14,150
	Miscellaneous Exp.	11,320	345,030
	Net Income		251,040

Answer -4	Retained Earning Statement
	Beginning Balance	280,000
	Add Net Income (before adj)	251,370
	Add Diff Net Income
	(251370--251,040)	330
	Total	531,700
	Less
	Dividend Paid	18,680
	Ending Balance	513,020

As per above calculation, retained earning decreased by $ 330.