Reliable Repairs & Service, an electronics repair store, prepared the following
ID: 2415958 • Letter: R
Question
Reliable Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations:
Reliable Repairs & Service
UNADJUSTED TRIAL BALANCE
April 30, 2016
1
Cash
10,800.00
2
Accounts Receivable
67,270.00
3
Supplies
16,390.00
4
Equipment
115,170.00
5
Accounts Payable
15,830.00
6
Unearned Fees
17,930.00
7
Karin Bickle, Capital
117,930.00
8
Karin Bickle, Drawing
13,860.00
9
Fees Earned
297,710.00
10
Wages Expense
94,430.00
11
Rent Expense
71,780.00
12
Utilities Expense
52,100.00
13
Miscellaneous Expense
7,600.00
14
Totals
449,400.00
449,400.00
For preparing the adjusting entries, the following data were assembled:
Determine the effect of the adjusting entries on Karin Bickle, Capital.
Can you explain in detail on how you Determine the revenues, expenses, and net income of Reliable Service & Repairs before the adjusting entries. Determine the revenues, expenses, and net income of Reliable Service & Repairs after the adjusting entries.
ACCOUNT TITLE DEBIT CREDIT1
Cash
10,800.00
2
Accounts Receivable
67,270.00
3
Supplies
16,390.00
4
Equipment
115,170.00
5
Accounts Payable
15,830.00
6
Unearned Fees
17,930.00
7
Karin Bickle, Capital
117,930.00
8
Karin Bickle, Drawing
13,860.00
9
Fees Earned
297,710.00
10
Wages Expense
94,430.00
11
Rent Expense
71,780.00
12
Utilities Expense
52,100.00
13
Miscellaneous Expense
7,600.00
14
Totals
449,400.00
449,400.00
Explanation / Answer
Given
Adjustment
Closing
SI No
ACCOUNT TITLE
DEBIT
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT
1
Cash
10,800
10,800
-
2
Accounts Receivable
67,270
67,270
-
3
Supplies
16,390
11,580
4,810
4
Equipment
1,15,170
6130
1,09,040
5
Accounts Payable
15,830
-
15,830
6
Unearned Fees
17,930
15250
7,270
9,950
7
Karin Bickle, Capital
1,17,930
-
1,17,930
8
Karin Bickle, Drawing
13,860
13,860
-
9
Fees Earned
2,97,710
7,270
15250
3,05,690
10
Wages Expense
94,430
5100
99,530
-
11
Rent Expense
71,780
71,780
-
12
Utilities Expense
52,100
11,580
63,680
-
13
Miscellaneous Expense
7,600
7,600
-
16
Depreciation
6130
6,130
-
17
Wages payable
5100
-
5,100
Totals
4,49,400
4,49,400
45330
45330
454500
454500
1
Utilities Expense Dr
11,580
To Supplies Account
11,580
2
Depreciation
6,130
Equipment
6,130
3
Unearned Fees
7,980
Fees Earned
7,980
4
Wages Expense
5,100
Wages payable
5,100
Before Adjustment
After Adjustment
Diff
Particulars
Amount ($)
Amount ($)
Amount ($)
Fees Earned
2,97,710
3,05,690
-7,980
Less:
Karin Bickle, Drawing
-13,860
-13,860
-
Wages Expense
-
-
-
Rent Expense
-94,430
-99,530
5,100
Utilities Expense
-71,780
-71,780
-
Miscellaneous Expense
-52,100
-63,680
11,580
Depreciation
-7,600
-7,600
-
Net P&L
57,940
49,240
8,700
Given
Adjustment
Closing
SI No
ACCOUNT TITLE
DEBIT
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT
1
Cash
10,800
10,800
-
2
Accounts Receivable
67,270
67,270
-
3
Supplies
16,390
11,580
4,810
4
Equipment
1,15,170
6130
1,09,040
5
Accounts Payable
15,830
-
15,830
6
Unearned Fees
17,930
15250
7,270
9,950
7
Karin Bickle, Capital
1,17,930
-
1,17,930
8
Karin Bickle, Drawing
13,860
13,860
-
9
Fees Earned
2,97,710
7,270
15250
3,05,690
10
Wages Expense
94,430
5100
99,530
-
11
Rent Expense
71,780
71,780
-
12
Utilities Expense
52,100
11,580
63,680
-
13
Miscellaneous Expense
7,600
7,600
-
16
Depreciation
6130
6,130
-
17
Wages payable
5100
-
5,100
Totals
4,49,400
4,49,400
45330
45330
454500
454500
1
Utilities Expense Dr
11,580
To Supplies Account
11,580
2
Depreciation
6,130
Equipment
6,130
3
Unearned Fees
7,980
Fees Earned
7,980
4
Wages Expense
5,100
Wages payable
5,100
Before Adjustment
After Adjustment
Diff
Particulars
Amount ($)
Amount ($)
Amount ($)
Fees Earned
2,97,710
3,05,690
-7,980
Less:
Karin Bickle, Drawing
-13,860
-13,860
-
Wages Expense
-
-
-
Rent Expense
-94,430
-99,530
5,100
Utilities Expense
-71,780
-71,780
-
Miscellaneous Expense
-52,100
-63,680
11,580
Depreciation
-7,600
-7,600
-
Net P&L
57,940
49,240
8,700