Financial and Managerial Accounting: PR3-3A Econo Company, an electronics repair store

Financial and Managerial Accounting

PR3-3A Adjusting Entries
Econo Company, an electronics repair store, prepared the unadjusted trial balance shown below at the end of its first year of operations.
Econo Company
Unadjusted Trial Balance
April 30, 2012
Debit Balances Credit Balances
Cash 13,800
Accounts Receivable 90,000
Supplies 21,600
Equipment 454,800
Accounts Payable 21,000
Unearned Fees 24,000
Randy Huntsinger, Capital 312,000
Randy Huntsinger, Drawing 18,000
Fees Earned. 543,000
Wages Expense 126,000
Rent Expense 96,000
Utilities Expense 69,000
Miscellaneous Expense 10,800
900,000 900,000
For preparing the adjusting entries, the following data were assembled:
a. Fees earned but unbilled on April 30 were $10,000.
b. Supplies on hand on April 30 were $8,150.
c. Depreciation of office equipment was estimated to be $13,800 for the year.
e. The balance in unearned fees represented the April 14 receipt in advance for services to be provided. Only $19,000 of the services was provided between April 1 and April 30.
f. Unpaid wages accrued on April 30 were $1,770.

Instructions
1. Journalize the adjusting entries necessary on April 30, 2012.
2. Determine the revenues, expenses, and net income of Econo Company before the adjusting entries.
3. Determine the revenues, expense, and net income of Econo Company after the adjusting entries.
4. Determine the effect on Randy Huntsinger, Capital of the adjusting entries.
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