Crazy Mountain Outfitters Co., an outfitter store for fishing treks, prepared th
ID: 2473129 • Letter: C
Question
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: For preparing the adjusting entries, the following data were assembled: Supplies on hand on April 30 were $1,380. Fees earned but unbilled on April 30 were $3,900. Depreciation of equipment was estimated to be $3,000 for the year. Unpaid wages accrued on April 30 were $2,475. The balance in unearned fees represented the April 1 receipt in advance for services t be provided. Only $14,140 of the services was provided between April 1 and April 30. Instructions Journalize the adjusting entries necessary on April 30. 2016. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters before the adjusting entries. Determine the revenues, expense, and net income of Crazy Mountain Outfitters G after the adjusting entries. Determine the effect of the adjusting entries on Retained Earnings.Explanation / Answer
As per above calculation, retained earning increased by $ 6745.
Answer 1 Adjusting Enteries Sl no. Date Accounts Debit Credit a 4/30/2016 Supplies Expenses 5820 Supplies 5820 b 4/30/2016 Account Receivable 3900 Fee Earned 3900 c 4/30/2016 Depreciation - Equip 3000 Accumalted Dep - Equip 3000 d 4/30/2016 Wages Expenses 2475 Wages Payable 2475 e 4/30/2016 Unearned Fee 14140 Fee earned 14140