Question
Adjusting Entries Milbank Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations:
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 | 12,900 | |||
Accounts Receivable | 85,660 | |||
Supplies | 20,640 | |||
Equipment | 490,700 | |||
Accounts Payable | 20,120 | |||
Unearned Fees | 22,700 | |||
Nancy Townes, Capital | 355,000 | |||
Nancy Townes, Drawing | 17,030 | |||
Fees Earned | 516,000 | |||
Wages Expense | 119,710 | |||
Rent Expense | 91,330 | |||
Utilities Expense | 65,530 | |||
Miscellaneous Expense | 10,320 | |||
913,820 | 913,820 |
For preparing the adjusting entries, the following data were assembled:
Required:
Fees earned but unbilled on June 30 were $9,340.
Supplies on hand on June 30 were $7,620.
Depreciation of equipment was estimated to be $12,900 for the year.
The balance in unearned fees represented the June 1 receipt in advance for services to be provided. During June $17,930 of the services was provided.
Unpaid wages accrued on June 30 were $1,650.
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 $.
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