Check Figures: Adjusted Trial Balance totals should be $161,450; Net Income shou
ID: 2558581 • Letter: C
Question
Check Figures: Adjusted Trial Balance totals should be $161,450; Net Income should be $35,630.
Do not add any accounts, use only the accounts that appear in the first photo.
Acorual Basis of Accounting Chapter 3 various tyes LoB P3-20B. Worksheet The July 31 unadjusted trial balance of Sharp Outfitters, a firm renting equipment to canoeists and campers, follows. dix 38) SHARP OUTFITTERS Unadjusted Trial Balance July 31 Debit Cred S 3,750 3,200 97,000 $ 16,500 3,500 8850 33,000 Accounts payable. Uneamed rental fees·····.. . Retained earnings Rental fees earned Wages expense Advertising expense.... 1,200 78,150 2,300 Travel expense $149,000 $149,000 Sharp Outfitters'fiscal year ends on July 31. The following additional information is available: I. Supplies on hand at July 31 amount to $4,300. 2. Insurance expense for the year is $1,600. 3. Depreciation for the year is $9,250. 4. The uncarned rental fees consist of deposits received from customers in advance when reservations are made. During the year, $4,850 of the unearned rental fees were eaned. The remaining deposi apply to rentals for August and September. 5. At July 31, revenue from rental services earned during July but not yet billed or received amiui to $2,500. (Note: Debit Fees Receivable.) 6. Accrued wages payable for equipment handlers and guides amounts to $700 at July 31. Required Enter the trial balance in a worksheet and complete the worksheet using the adjustment data given above.Explanation / Answer
Note:
1. Certain accounts required for the adjusting entries are not there in the first photo and are required to be added such as supplies expense, insurance expense, depreciation expense, etc. Also entry no. 5 specifically mentions "debit fees receivable", which is not there in the first photo. Hence accounts other than those in the first photo are added without which the worksheet would be incorrect.
2. For accounts affected by more than one adjusting entry, the effects the entries have been shown separately for better understanding.
SHARP OUTFITTERS Worksheet July 31 Account Titles Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 3750 30 4980 4980 1260 Supplies 8600 4300 4300 4300 Prepaid insurance 3200 1600 1600 1600 Equipment 97000 97000 97000 Accumulated depreciation 16500 9250 25750 25750 Accounts payable 3500 3500 3500 Unearned rental fees 8850 4850 4000 4000 Common stock 33000 33000 33000 Retained earnings 9000 9000 9000 Dividends 1200 1200 1200 Rental fees earned 78150 4850 85500 85500 2500 Wages expense 28800 700 29500 29500 Rent expense 3300 3300 3300 Advertising expense 2300 1260 1040 1040 Travel expense 850 850 850 Totals 149000 149000 Supplies expense 4300 4300 4300 Insurance expense 1600 1600 1600 Depreciation expense 9250 9250 9250 Miscellaneous expense 30 30 30 Fees receivable 2500 2500 2500 Wages payable 700 700 700 Totals 24490 24490 161450 161450 49870 85500 Net income 35630 35630 Totals 85500 85500 111580 111580