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, 2019 Debit Credit Balances Balances Cash 11,400 72,600 Accounts Receivable. Supplies. Equipment.. Accounts Payable 7,200 112,000 12,200 Unearned Fees. 19,200 137,800 John Bridger, Capital John Bridger, Drawing Fees Earned... Wages Expense Rent Expense Utilities Expense Miscellaneous Expense 10,000 305,800 157,800 55,000 42,000 7,000 475,000 475,000 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 to be provided. Only $14,140 of the services was provided between April 1 and April 30. Instructions 1. Journalize the adjusting entries necessary on April 30, 2019. 2. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co. before the adjusting entries. 3. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co. after the adjusting entries. 4. Determine the effect of the adjusting entries on John Bridger, Capital.
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, 2019 Debit Credit Balances Balances Cash 11,400 72,600 Accounts Receivable. Supplies. Equipment.. Accounts Payable 7,200 112,000 12,200 Unearned Fees. 19,200 137,800 John Bridger, Capital John Bridger, Drawing Fees Earned... Wages Expense Rent Expense Utilities Expense Miscellaneous Expense 10,000 305,800 157,800 55,000 42,000 7,000 475,000 475,000 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 to be provided. Only $14,140 of the services was provided between April 1 and April 30. Instructions 1. Journalize the adjusting entries necessary on April 30, 2019. 2. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co. before the adjusting entries. 3. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co. after the adjusting entries. 4. Determine the effect of the adjusting entries on John Bridger, Capital.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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, 2019
Debit
Credit
Balances
Balances
Cash
11,400
72,600
Accounts Receivable.
Supplies.
Equipment..
Accounts Payable
7,200
112,000
12,200
Unearned Fees.
19,200
137,800
John Bridger, Capital
John Bridger, Drawing
Fees Earned...
Wages Expense
Rent Expense
Utilities Expense
Miscellaneous Expense
10,000
305,800
157,800
55,000
42,000
7,000
475,000
475,000
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 to
be provided. Only $14,140 of the services was provided between April 1 and April 30.
Instructions
1. Journalize the adjusting entries necessary on April 30, 2019.
2. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co.
before the adjusting entries.
3. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co.
after the adjusting entries.
4. Determine the effect of the adjusting entries on John Bridger, Capital.
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