Econo Company, an electronics repair store, prepared the unadjusted trial balance shown below at the end of its first year of operations.

For preparing the adjusting entries, the following data were assembled:a. Fees earned but unbilled on April 30 were $10,000.b. Supplies on hand on April 30 were $8,150.c. Depreciation of equipment was estimated to be $13,800 for the year.d. The balance in unearned fees represented the April 1 receipt in advance for services to be provided. Only $19,000 of the services was provided between April 1 and April 30.e. Unpaid wages accrued on April 30 were $1,770.

Instructions1. Journalize the adjusting entries necessary on April 30, 2012.2. Determine the revenues, expenses, and net income of Econo Company before the adjusting entries.3. Determine the revenues, expense, and net income of Econo Company after the adjusting entries.4. Determine the effect on retained earnings of the adjusting entries.

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Econo Company Unadjusted Trial Balance April 30, 2012 Debit Credit Balances Balances Cash 13,800 .... Accounts Receivable. 90,000 Supplies. 21,600 Equipment... Accounts Payable 454,800 21,000 Unearned Fees.. 24,000 Capital Stock 55,000 Retained Earnings. 257,000 Dividends 18,000 Fees Earned. 543,000 Wages Expense . Rent Expense . Utilities Expense Miscellaneous Expense 126,000 96,000 69,000 10,800 900,000 900,000