1. Adjusting Entries

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

   Milbank Repairs & Service
   Unadjusted Trial Balance
   June 30, 2019
   	Debit Balances		Credit Balances
   Cash	12,960
   Accounts Receivable	86,070
   Supplies	20,740
   Equipment	489,370
   Accounts Payable			20,220
   Unearned Fees			22,810
   Nancy Townes, Capital			353,000
   Nancy Townes, Drawing	17,110
   Fees Earned			518,520
   Wages Expense	120,300
   Rent Expense	91,780
   Utilities Expense	65,850
   Miscellaneous Expense	10,370
   	914,550		914,550

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

   Required:

   • Fees earned but unbilled on June 30 were $9,380.
   • Supplies on hand on June 30 were $7,660.
   • Depreciation of equipment was estimated to be $12,960 for the year.
   • The balance in unearned fees represented the June 1 receipt in advance for services to be provided. During June $18,020 of the services was provided.
   • Unpaid wages accrued on June 30 were $1,660.

   1. Journalize the adjusting entries necessary on June 30, 2019.

   a.	Accounts Receivable
   	Fees Earned
   b.	Supplies Expense
   	Supplies
   c.	Depreciation Expense
   	Accumulated Depreciation-Equipment
   d.	Unearned Fees
   	Fees Earned
   e.	Wages Expense
   	Wages Payable

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   1. Keep in mind that you will be making an adjusting entry for each of these that affects at least one income statement account (revenue or expense) and one balance sheet account (asset or liability). As you go through each of these, consider both sides of the transaction that results in an adjusting entry and identify related accounts. Remember, four different categories of adjusting entries include prepaid expenses (deferred expenses), unearned revenues (deferred revenues), accrued expenses (accrued liabilities), and accrued revenues (accrued assets) plus the adjustment for depreciation expense.

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

   Revenues	$
   Expenses
   Net income	$

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

   Revenues	$
   Expenses
   Net income	$

   4. Determine the effect of the adjusting entries on Nancy Townes, Capital. Nancy Townes, Capital decreases by $.

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