Question 3: Adjusting Entries (10 marks) Browning Company, an electronics stores

Question

Question 3: Adjusting Entries (10 marks) Browning Company, an electronics stores repair store, prepared the adjusted trial balance shown below at the end of its first year of operations Browning Company Unadjusted Trial Balance 31-Dec-16 DR CR Cash Accounts Receivable Supplies Equipment Accumulated Dep'n (Equipment) Accounts Payable Wages Payable Unearned Fees Neal Salmon, Capital Neal Salmon, Withdrawals Fees Earned Wages Expense Supplies Expense Rent Expense Utilities Expense Depreciation Expense 26.400 87.600 7.200 162,000 12.200 19.200 222,800 10,000 152,800 55,000 295,800 42.000 7,000 550,000 550,000 To prepare the adjusting entries, the following data were assembled a. Fees earned but unbilled on December 31 were S6.500 b. Supplies on hand on December 31, were $1,850 c. Depreciation of equipment was estimated to be $2,800 for the year. d. The balance in unearned fees represented the December I receipt in advance for services to be provided. Only $3.000 of the services was provided between December 1 and December 31 e. Unpaid wages accrued on December 31 were $1.275 Journalize the adjusting entries necessary on December 31, 2016. Debit (DR) Credit (CR)

Explanation / Answer

Debit(DR) Credit (CR) a. Debtors 6500 Fee Earned 6500 b. Supplies Expense 5350 Supplies 5350 c. Depreciation Expense 2800 Accumulated Depreciation 2800 d. Fees Earned 3000 Unearned Fees 3000 e. Wages Expense 1275 Wages payable 1275

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