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	14,100
Accounts Receivable	93,620
Supplies	22,560
Equipment	474,340
Accounts Payable			22,000
Unearned Fees			24,820
Common Stock			55,000
Retained Earnings			271,000
Dividends	18,610
Fees Earned			563,980
Wages Expense	130,840
Rent Expense	99,820
Utilities Expense	71,630
Miscellaneous Expense	11,280
	936,800		936,800

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

Required:

• Fees earned but unbilled on April 30 were $10,210.
• Supplies on hand on April 30 were $8,330.
• Depreciation of equipment was estimated to be $14,100 for the year.
• The balance in unearned fees represented the April 1 receipt in advance for services to be provided. During April $19,610 of the services was provided.
• Unpaid wages accrued on April 30 were $1,8000

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

  a.
  	Fees Earned
  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 increases/decreases by $.