Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

3. Identify cultural universals in nonverbal communication.

Answered: 1 week ago