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Answer:
1. Dr Supplies expense $5,820
Cr Supplies $5,820
Dr Accounts receivable $3,900
Cr Earned fees $3,900
Dr Depreciation expense $3,000
Cr Accumulated depreciation $3,000
Dr Wages expense $2,475
Cr Wages payable $2,475
Dr Unearned fees $14,140
Cr Fees earned $14,140
2. Revenues $305,800
Expenses $261,800
Net income $44,000
3. Revenue $323,840
Expense $261,800
Net income $50,745
4. $6,745 Increase
Explanation:
1. Preparation of the journal entries necessary on April 30. 2019
Dr Supplies expense $5,820
Cr Supplies $5,820
($7,200-$1,380)
(To record supplies used)
Dr Accounts receivable $3,900
Cr Earned fees $3,900
(To record accrued fees Earned)
Dr Depreciation expense $3,000
Cr Accumulated depreciation $3,000
(To record equipment Depreciation)
Dr Wages expense $2,475
Cr Wages payable $2,475
(To record accrued wages)
Dr Unearned fees $14,140
Cr Fees earned $14,140
(To record fees earned)
2. Calculation to Determine the revenues, expenses, and net income of Crazy Mountain Outfitters before the adjusting entries.
REVENUE
Fees earned $305,800
EXPENSE:
Wages Expense $157,800
Rent Expense $55,000
Utilities Expense $42,000
Miscellaneous Expense $7,000
Expense $261,800
NET INCOME $44,000
($305,800-$261,800)
Therefore the revenues, expenses, and net income of Crazy Mountain Outfitters before the adjusting entries will be:
Revenues $305,800
Expenses $261,800
Net income $44,000
3. Calculation to Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co. after the adjusting entries.
REVENUE
Fees Earned $305,800
Fees earned but unbilled $3,900
Unearned fees $14,140
Revenue $323,840
EXPENSE
Wages Expense $157,800
Rent Expense $55,000
Utilities Expense $42,000
Miscellaneous Expense $7,000
Supplies expense $5,820
Depreciation of equipment $3,000
Unpaid wages accrued $2,475
Expense $273,095
NET INCOME $50,745
($323,840-$273,095)
Therefore the revenues, expenses, and net income of Crazy Mountain Outfitters Co. after the adjusting entries will be:
Revenue $323,840
Expense $261,800
Net income $50,,745
4. Calculation to Determine the effect of the adjusting entries on Retained Earnings.
Effect of the adjusting entries=$50,745-$44,000
Effect of the adjusting entries=$6,745
Therefore the effect of the adjusting entries on Retained Earnings is Retained Earnings increases by $6,745
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