Reliable Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations:

Reliable Repairs & Service

Unadjusted Trial Balance

April 30, 2018

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

• Fees earned but unbilled on April 30 were $9,850.

• Supplies on hand on April 30 were $4,660.

• Depreciation of equipment was estimated to be $6,470 for the year.

• The balance in unearned fees represented the April 1 receipt in advance for services to be provided. During

April, $15,000 of the services were provided.

• Unpaid wages accrued on April 30 were $5,200.

Instructions

1. Journalize the adjusting entries necessary on April 30, 2018.

2. Determine the revenues, expenses, and net income of Reliable Repairs & Service before the adjusting entries.

3. Determine the revenues, expense, and net income of Reliable Repairs & Service after the adjusting entries.

4. Determine the effect of the adjusting entries on Retained Earnings?

Transcribed Image Text:

Debit Balances Credit alae 10,350 . .. . 116,100 Accounts Payable. 15,750 18,000 10,000 111,500 Retained Earnings 13,500 Fees Earned. 294,750 IS 2,000 51,70 8,1(x) 450,000 ense Uiliiis yxn MİSKX>Manelus Btpeste 450,000