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	13,140
Accounts Receivable	87,230
Supplies	21,020
Equipment	495,190
Accounts Payable			20,490
Unearned Fees			23,120
Nancy Townes, Capital			357,000
Nancy Townes, Drawing	17,340
Fees Earned			525,480
Wages Expense	121,910
Rent Expense	93,010
Utilities Expense	66,740
Miscellaneous Expense	10,510
	926,090		926,090

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

Required:

Fees earned but unbilled on June 30 were $9,510.

Supplies on hand on June 30 were $7,770.

Depreciation of equipment was estimated to be $13,140 for the year.

The balance in unearned fees represented the June 1 receipt in advance for services to be provided. During June $18,260 of the services was provided.

Unpaid wages accrued on June 30 were $1,680.

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

a.
b.
c.
d.
e.

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 by $.