Adjusting Entries

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

Reliable Repairs and Service
Unadjusted Trial Balance
April 30, 2018
	Debit Balances		Credit Balances
Cash	11,990
Accounts Receivable	79,580
Supplies	19,180
Equipment	408,080
Accounts Payable			18,700
Unearned Fees			21,090
Common Stock			55,000
Retained Earnings			227,000
Dividends	15,820
Fees Earned			479,400
Wages Expense	111,220
Rent Expense	84,850
Utilities Expense	60,880
Miscellaneous Expense	9,590
	801,190		801,190

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

Required:

Fees earned but unbilled on April 30 were $8,680.

Supplies on hand on April 30 were $7,090.

Depreciation of equipment was estimated to be $11,990 for the year.

The balance in unearned fees represented the April 1 receipt in advance for services to be provided. During April $16,660 of the services was provided.

Unpaid wages accrued on April 30 were $1,530.

1. Journalize the adjusting entries necessary on April 30, 2018.

a.
b.
c.
d.
e.

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

Revenues	$
Expenses
Net income	$

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

Revenues	$
Expenses
Net income	$

4. Determine the effect of the adjusting entries on Retained Earnings. Retained Earnings by $.

> C i Secure I https://v2.cengsqenow.c Chapter 03 Homework (Application) (rank Adjusting Entries Raliahla Repairs nd Serv" an "trenirs repair stane, prepared th-tolning 4nadastet trial balanc at the "d of its first year at operations: 7 FX Reliable Repairs and Servic Unadjusted Trial Balance April 30, 2013 3 EX 0303 BLANKSHEETAL . 11,090 9.500 10,180 upplic: 8. EX.03 19 ALGO 9. EX.03-21 ALGO 10. CX03 26ILANKSIICLT.A 11 FX03-77 RI ANKSHFFTA-. Accounts Fayable 18,700 Uneamed Foas 21.090 Rctained Earning 15,A20 479,400 Fees Eamed Wages Expons Hent Expe Utili Expensc 12. PR.03-01.BLANKSHEETA. 111,220 13. PR.03 02.DLANKSI ILLTA. 30,880 1 PR3-O ALG Fur preparing the edjusting enries, Uhe Tullowing dela were assembled: Fors camed but unbillsd on April 30 were $8,080. Deproclation ot cqulpmant wa: ctimated to bo $1,DD0 tor the year the balance in unearned fees represented the Apri 1 recept in advance for services to be provided. Uuring April10,650 of the services was provided. Check Ny Wk Progress: 1415 Items All work saved Email Irstructor Save and Exit Submit Assignment for Grading O lype hene to search