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	13,860
Accounts Receivable	92,000
Supplies	22,170
Equipment	471,750
Accounts Payable			21,610
Unearned Fees			24,380
Common Stock			55,000
Retained Earnings			271,000
Dividends	18,290
Fees Earned			554,200
Wages Expense	128,570
Rent Expense	98,090
Utilities Expense	70,380
Miscellaneous Expense	11,080
	926,190		926,190

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

Required:

• Fees earned but unbilled on April 30 were $10,030.
• Supplies on hand on April 30 were $8,190.
• Depreciation of equipment was estimated to be $13,860 for the year.
• The balance in unearned fees represented the April 1 receipt in advance for services to be provided. During April $19,260 of the services was provided.
• Unpaid wages accrued on April 30 were $1,770.

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 $.