Question

Problem 1 N&G Co. and outfitter store prepared the following unad ter store prepared the following unadiusted trial balance at the end of its first year of operations: Cash Accounts Receivable Supplies Equipment Accounts Payable Unearned Fees S.G., Capital S.G., Drawing Fees earned Wages Expense Rent Expense Utilities Expense Miscellaneous Expense Unadjusted Trial Balance Debit Credit 50,000 15,000 10,000 100,000 20,000 25,000 35,000 10,000 250,000 80,000 40,000 20,000 5,000 330,000 330,000 For preparing the adjusting entries, the following data were assembled: B a. Supplies on hand on January 31 were $5,000 b. Fees earned but unbilled on January 31 were $10,000 CC Depreciation of equipment for the month was $8.000 ed. Unpaid wages accrued on January 31 were $9,000 Instructions: 1. Journalize the adjusting entries necessary on January 31 2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance (Template provided)

Answer 1

Journal Entries Date Account Title and Explaination Post. Ref. Debit (S) Credit (S) 5,000.00 Supplies Expense ($10000-$5000) Supplies (To record adjusting entry for consumption of supplies) S 5,000.00 b $ 10,000.00 Accounts Receivable Fees Earned (To record Earned Revenue) $ 10,000.00 8,000.00 Depreciation Expense Accumulated Depreciation - Equipment (To record depreciation on equipment) $ 8,000.00 9,000.00 Wages Expense Wages Payable (To record accrued wages) $ 9,000.00