Reference no: EM132566160
Question - Funan Repairs and Service, an electronics repair store, prepared the unadjusted trial balance, shown below, at the end of its first year of operations.
Funan Repairs and Service Unadjusted Trial Balance as at June 30, 2019
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|
Dr
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Cr
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Cash
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13,800
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|
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Accounts Receivable
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90,000
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|
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Supplies
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21,600
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|
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Equipment
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154,800
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|
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Accounts Payable
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21000
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Unearned Fee
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24000
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Adam Lee, Capital
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|
162,000
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Adam Lee, Drawings
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18,000
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|
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Fees Earned
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393,000
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Wages Expense
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126,000
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|
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Rent Expense
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96,000
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|
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Utilities Expense
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69,000
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|
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Miscellaneous
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10,800
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|
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Expense
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$600,000
|
$600,000
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The following data was prepared for the purpose of recording the balance day adjustments:
(a) Fees earned but not invoiced on June 30 were $12,700.
(b) Supplies on hand on June 30 amounted to $4,175.
(c) The equipment was purchased at the formation of the business. The accountant estimates it will have a residual value of $4,800 and useful life of 8 years. It is decided to depreciate the equipment using the reducing balance method at a rate of 50%.
(d) The balance in the unearned feeds represents the June 1 receipt in advance for services to be provided. Only $14,200 of the services was provided before the 30 June.
(e) Unpaid wages accrued on 30 June amounted to $1,100.
Required - Journalise the adjusting entries necessary at 30 June 2016. Show all workings. Narrations are required.