Brown trout outfitters co., an outfitter store for fishing treks,

Brown Trout Outfitters Co., an outfitter store for fishing treks, prepared the following unadjusted trial balance at the end of its first year of operations:


                                                           Brown Trout Outfitters Co.

                                                           Unadjusted Trial Balance

                                                              September 30, 2012


                                              Debit                                           Credit

                                           Balances                                     Balances

Cash                                $26,400

Accounts Receivable          87,600

Supplies                              7,200

Equipment                        162,000

Unearned Fees                                                                      12,200

Capital Stock                                                                        80,000

Retained Earnings                                                               142,800

Dividends                              10,000

Fees Earned                                                                       295,800

Wages Expense                    152,800

Rent Expense                        55,000

Utilities Expense                     42,000

Miscellaneous Expense            7,000                                                     

    TOTALS                         $550,000                                 $550,000   



For preparing the adjusting entries, the following data were assembled:


a.  Supplies on hand on September 30 were $1,850.

b.  Fees earned but unbilled on September 30 were $6,500.

c.  Depreciation of equipment was estimated to be $2,800 for the year.

d.  Unpaid wages accrued on September 30 were $1,275.

e.  The balance in unearned fees represented the September 1 receipt in advance for services to be provided. Only $3,000 of the services was provided between September 1 and September 30.




1.  Journalize the adjusting entries necessary on September 30, 2012

2.  Determine revenues, expenses, and net income of Brown Trout Outfitters Co. before the adjusting entries.

3.  Determine the revenues, expense, and net income of Brown Trout Outfitters Co. after the adjusting entries.

4.  Determine the effect on retained earnings of the adjusting entries.

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